Business Plan Investors Bankers

Zanzibar Magic Company Limited
1

BUSINESS PLAN

PRINCIPAL OWNER: Daud John Kiango,

Botanic Country Resort,Tunguu, Maili Kumi, P. o. Box 4084, Zanzibar, Tanzania
Tel: +255 777 844417 Email: info@zanzibarmagic.com Skype: zanzibar.magic

Websites: www.ZanzibarMagic.com,
www.MadeInTanzaniaSafaris.com
www.TanzaniaSafarisZanzibarTravel.org
www.ZanzibarGolfClub.com
www.BotanicResortZanzibar.com
July 9, 2014

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STATEMENT OF PURPOSE

Planning to become one of the top entertainment venues in East and Central Africa and within the Indian Ocean.

We are a service business engaged in the direct marketing of affordable entertainment facilities and superior accommodation, sport, educational
with restaurants and bars including swimming pools, squash court, shopping arcades and offices, conference hall, events and exhibition space and
the first golf range on the island, with alternative health and healing spa including in house bookings and reservations services to any travel
requirement and event on the planet.

EXPLANATION OF PURPOSE

Our surveys have found that sadly Zanzibar Island is lacking in a good entertainment and sport facilities for both locals and foreign visitors.

Combining our business, advertising, and publishing experience, it is our goal to capture as many as possible clients interested in the arts,
entertainment and recreational sport and alternative health universe by utilizing our 20+ acres plot of land 14 km out of the Stone town.

Our reasons for investing in this area are clear: people are seeking more and more for natural environments and impressive nature, so we consider
that this is the future in the short, medium and long term.

Our market research indicates we can achieve this goal and realize a profit of millions of USD$ within a number of years.


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Table of Contents

Statement of Confidentiality & Non-Disclosure ....................................................................................... 6
Executive Summary .................................................................................................................................... 7
Business Description ................................................................................................................................. 8
Products and Services ............................................................................................................................... 9
The Market ............................................................................................................................................... 10
Competition ................................................................................................................................................ 1
Operations ............................................................................................................................................... 13
Management Team .................................................................................................................................... 1
Risk/Opportunity ...................................................................................................................................... 14
Financial Summary .................................................................................................................................. 15
Capital Requirements .............................................................................................................................. 17
1. Business Description ............................................................................................................................ 20
1.1 Industry Overview .............................................................................................................................. 21
1.2 Company Description ........................................................................................................................ 22
1.3 History and Current Status ................................................................................................................ 33
1.4 Goals and Objectives ......................................................................................................................... 33
1.5 Critical Success Factors .................................................................................................................... 34
1.6 Company Ownership ........................................................................................................................... 1
1.7 Exit Strategy ....................................................................................................................................... 35
2. Products / Services ............................................................................................................................... 36
2.1 Product/Service Description .............................................................................................................. 40
2.2 Unique Features or Proprietary Aspects of Product/Service ............................................................. 46
2.3 Research and Development ................................................................................................................ 1
2.4 Production .......................................................................................................................................... 48
2.5 New and Follow-on Products/Services ................................................................................................ 1
3. The Market .............................................................................................................................................. 51
3.1 Industry Analysis ................................................................................................................................ 53
3.2 Market Analysis.................................................................................................................................. 59
3.3 Competitor Analysis ........................................................................................................................... 72
4. Marketing Strategies and Sales ........................................................................................................... 82
4.1 Introduction ........................................................................................................................................ 82
4.2 Market Segmentation Strategy .......................................................................................................... 82
4.3 Targeting Strategy ............................................................................................................................. 83
4.4 Positioning Strategy ........................................................................................................................... 83
4.5 Product/Service Strategy ................................................................................................................... 84
4.6 Pricing Strategy.................................................................................................................................. 85
4.7 Distribution Channels ........................................................................................................................... 1
4.8 Promotion and Advertising Strategy .................................................................................................. 92

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4.9 Sales Strategy.................................................................................................................................... 97
4.10 Sales Forecasts ............................................................................................................................... 98
5. Development ........................................................................................................................................ 100
5.1 Development Strategy ..................................................................................................................... 100
5.2 Development Timeline ..................................................................................................................... 100
5.3 Development Expenses ................................................................................................................... 101
6. Management ......................................................................................................................................... 101
6.1 Company Organization .................................................................................................................... 103
6.2 Management Team .......................................................................................................................... 104
6.3 Management Structure and Style .................................................................................................... 105
6.4 Ownership ........................................................................................................................................ 106
6.6 Board of [Advisors OR Directors]..................................................................................................... 108
7. Operations ............................................................................................................................................ 109
7.1 Operations Strategy ......................................................................................................................... 109
7.2 Scope of Operations ........................................................................................................................ 109
7.3 Ongoing Operations ......................................................................................................................... 109
7.4 Location ........................................................................................................................................... 110
7.5 Personnel ............................................................................................................................................. 1
7.6 Production ........................................................................................................................................ 127
7.7 Operations Expenses ...................................................................................................................... 128
7.8 Legal Environment ........................................................................................................................... 129
7.9 Inventory .......................................................................................................................................... 129
7.10 Suppliers ........................................................................................................................................ 129
7.11 Credit Policies ................................................................................................................................ 130
8. Financials ............................................................................................................................................. 131
8.1 Start-up Funds ..................................................................................................................................... 1
8.2 Financial History and Analysis (current businesses only) ............................................................... 138
8.3 Current Financial Position (current, takeover or franchise businesses only) .................................. 138
8.4 Operating Forecast .......................................................................................................................... 139
8.5 Break-Even Analysis ........................................................................................................................ 139
8.6 Balance Sheet...................................................................................................................................... 1
8.7 Income Statement ............................................................................................................................ 140
8.8 Cash Flow ........................................................................................................................................ 142
9. [Offering OR Funding Request] ......................................................................................................... 143
9.1 Offer ................................................................................................................................................. 144
9.2 Capital Requirements ...................................................................................................................... 147
9.3 Risk/Opportunity .............................................................................................................................. 147
9.4 Valuation of Business ...................................................................................................................... 148
9.5 Exit Strategy ..................................................................................................................................... 149
10. Refining the Plan ............................................................................................................................... 150

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10.1 For Raising Capital ........................................................................................................................ 150
10.2 Refine According to Type of Business ........................................................................................... 151
11. Appendix ............................................................................................................................................ 152


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Statement of Confidentiality & Non-Disclosure

This document contains proprietary and confidential information. All data submitted to ............................................ is provided in
reliance upon its consent not to use or disclose any information contained herein except in the context of its business deali ngs with Zanzibar Magic
Company Limited. The recipient of this document agrees to inform its present and future employees and partners who view or have access to the
document's content of its confidential nature.

The recipient agrees to instruct each employee that they must not disclose any information concerning this document to others except to the extent
that such matters are generally known to, and are available for use by, the public. The recipient also agrees not duplicate or distribute or permit
others to duplicate or distribute any material contained herein without Zanzibar Magic Company Limited's express written consent.

Zanzibar Magic Company Limited retains all title, ownership and intellectual property rights to the material and trademarks contained herein,
including all supporting documentation, files, marketing material, and multimedia.

BY ACCEPTANCE OF THIS DOCUMENT, THE RECIPIENT AGREES TO BE BOUND BY THE AFOREMENTIONED STATEMENT.

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Executive Summary

April 2012

Daud John Kiango
Botanic Country Resort,
Tunguu, P. o. Box 4084, Zanzibar, Tanzania

Dear Sir, Madam.

We are sitting on a goldmine that can start operating immediately with profits beyond our wildest dreams.

My name is Daud John Kiango, I am owner of the Zanzibar Magic Company Limited with my children Lubayna, Nabil and Annalisa Kiango.

We are requesting a loan to finance the development of a Entertainment and Sport Resort with Shopping Arcades, in Tunguu, on Zanzibar an Island
just of mainland Tanzania. I have more than 20 years experience in the hospitality Industry on Zanzibar / Tanzania and in Germany.

The tourism industry is steadily growing on Zanzibar with well in excess of 100,000 visitors to Zanzibar annually. Zanzibar Magic Company Limited
target market is local domestic residents, regional and international tourists alike, 70% of all visitors and local traffic directly passes our location.

We have good relationships with local residents, hotels and travel companies who will provide our company with business. We also plan to promote
ourselves heavily through our websites and internet marketing skills including on the ground within our immediate vicinity at grass roots level. With
rapid development in Tunguu, the new commercial and administrative capitol of Zanzibar, there are no competitors in the area, we are the first.

Zanzibar Magic Company Limited request a loan, and/or are looking for an investor of 1,700,000 USD in total to start and complete development
of this project. Zanzibar Magic Company Limited would like to repay your bank/investor in 10 years or less.

The source of repayment is from cash flow of the business. Zanzibar Magic Company Limited secondary source of repayment is from our land,
homes and business assets offered as collateral. Zanzibar Magic Company Limited equity value is 3,530,740.00 USD.

Attached is our business plan which backs up our request. If you have any questions, please call + 255 (0) 777 844417

Respectfully,

Daud John Kiango- Director

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Business Description

General:

ZANZIBAR MAGIC COMPANY LIMITED
Botanic Country Resort, Tunguu,
P. o. Box 4084
Zanzibar, Tanzania
E-Mail info@zanzibarmagic.com
Tel: +255 (0) 777-844417
http://www.ZanzibarMagic.com

Purpose: Provide affordable superior accommodation, sport, educational and entertainment facilities with restaurants and bars including swimming
pools, squash court, shopping arcades and offices, conference hall and the first golf range on the island, with alternative health and healing spa
including in house bookings and reservations services to any travel requirement and event on the planet.

Status: Start up Will open 1
st
Phase LATE 2012 with completion LATE 2014. It is a takeover of a non operational company which was voluntarily
liquidated in court.

Business Type: Travel, Hotel Hospitality, Property and Service.

Reasoning: 20 years experience on Zanzibar and Tanzania. Run the first privately owned disco club in the Stone Town for almost 6 years apart
from arranging events on Tanzania mainland for many years with self-employed catering experiences in Europe.

Services will be provided by an experienced team of professional hoteliers and service personnel. A certified instructor will develop sport academies
and provide tuition and classes, alternative medicine shall also be taught, herbal and botanical health nutritional supplements explained and grown
for sale and use on our land.

Owner: Mr. Daud John Kiango
Managing Director
Tel: +255(0)777-844417
Passport number: 951452958

Over 20 years experience in the hospitality and entertainment industry and 10 years experience as Manager/Owner of a large developing
establishment on Zanzibar.

Further Owners: Lubayna Kiango, Nabil Kiango, Annalisa Kiango
Tel: + 255(0)777-844417.


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Ms. Lubayna Kiango, 21 years old. Nabil 18 years old and Annalisa 15 years old are still schooling and training but looking forward in working in the
company in the future.

Legal Status: Limited Liability Company

Goals: To become one of the top entertainment venues in East and Central Africa and in the Indian Ocean.

Current: Raise finance to takeover the project and build remaining infrastructure implementing the project to operational status and operate it.

Long Term: Bring profitable status to the company that will equal or exceed current income levels. Create and build new existing relationships with,
hotels, tour companies and customers.

The Sponsors shall also try and find an international hotel chain group or an individual to take shares or rent the whole facility and let them have the
management and market the facility.

Permanent in house accommodation to for all staff
Completion of training schemes
Products and Services
I shall oversee with the assistance of my partners and staff all the implementation of the project and operations of all services offered.
On site, direct access to large variety of services. Quality affordable accommodation, shopping arcades, sport with alternative health and healing
training academies providing tuition and classes. Night and day entertainment, leisure activities and a childrens adventure playground and squash
court complimented by an in-house travel bookings and reservations agents- Botanic Zanzibar Tours and Safaris. It will be unique and value for
money apart from offering the only golf range on the island, including a health spa that will heal incurable conditions experienced by us humans
more and more so it seems, swimming pools, tennis, fitness center and basketball/volley ball, badminton shall also be available including billiards,
darts and other table sports.

We are locals with mixed roots and know our island secrets, no need on expensive fishing expeditions as our competitors offer, we introduce you to
the local fisherman who know better all the fishing grounds for example, we know the beach boys personally and can get them in a co-op for
marketing our services and products in return for good commissions to them, we have a great understanding of the viral effect we can produce
online more so then our competition, there is no glass ceiling.

Everyone is building on beaches and some are facing erosion and rust, we are building in the interior, almost rust and mosquito free, safari villa type
rooms, larger and traditionally designed, an entertainment area to hold a good 1000 people surrounded by restaurants and bars, shopping arcade
and forest/spice plantation under the stars to cater not only to visitors but having the locals in mind too, adding value to customers experiences from
where ever you come from.

We shall open customers eyes who have never before experienced Zanzibar even though they just live 100km away or less.


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The Market

Last year the Isles experienced a decline in arrivals when they received about 81,000 tourists against a projected figure of 150,000.
The fall was linked to the global economic crisis and the swine flu pandemic which disrupted travel plans in 2009.

But by this September 2010 the arrival figures were almost the same as the total recorded in 2009, indicating a rebound in business.

Source: The Citizen on Sunday, 19
th
December 2010, By Alawi Masare

According to the Tanzania Tourist Board TTB, Tanzania is expected to receive 1 million tourists by 2010 geared to generate USD1.5 Billion.

Source: The Guardian, 10
th
Jan 2011 by Beatrice Philemon http://www.ippmedia.com/frontend/index.php?l=24944

Tourism has become the biggest economic activity of this day and age. With 476 billion dollars in 2000, tourism is doubtless the primary source of
international trade receipts.

The World Tourism Organization (WTO) still expects over one billion international tourist arrivals in 2010 and over 1.5 billion tourists and US$ 2
trillion in 2020.

WTOs vision presents an optimistic picture for the tourism sector in Africa with growth of 5.5% a year forecast of the period 1995-2010, as against
the global rate of 4.1% of the 77 Million international tourist arrivals anticipated in the continent in 2020, an estimated 17 Million will be in the
countries of East Africa producing an average growth rate of 5.3%.

Zanzibar tourism began in late 1980s, is still a new industry, struggling to improve standards, with 87,511 tourists an increase 0f 43%, US$
4,471,000 foreign earnings in 2002.

According to figures compiled by the Zanzibar Commission for Tourism, there are currently 173 tourist accommodation establishments in Zanzibar,
with a total of 3,089 rooms and 6,139 beds. The majority are located in Unguja. Outside the hotels, there are approximately 20 restaurants of
international standard, with several new high quality establishments opened in the Stone Town in the past few years.

In addition, there are 108 licensed ground tour operators and diving units. Despite the large number of licensed operators, this sector is dominated
by a comparatively small number of licensed operators; this sector is dominated by a comparatively small number of major companies, which
account for the bulk of the business.

Zanzibar now receives mostly mid and low spending tourist and a number of high spending tourists. There are some international quality hotels in
Stone Town and on the East and South East Coast, but still the overall beach product (flights- transport accommodation food beverage
excursions shopping.etc) is just on the boundaries of being acceptable to the charter inclusive tourists, who themselves are still a step down
from top quality tourists, This, in fact, doesnt change the reality that tourism makes a significant contribution to the economy.


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To realize the goal of Zanzibar Government which emphasizes that the expected growth rate should be between 7-8% by 2010, and attained the
level of between 9-10% by 2020.

Our market research indicates we can achieve our goal and realize a profit of millions within a number of years.

We will market our products/services through different channels to our target market(s) (i.e. through website, direct sales force, Value Added
Resellers, channel partners, etc).

Key drivers are cost, especially to the local tourist, most believe tourism is only for foreigners, we shall embark on a campaign to promote local
domestic tourism at reasonable prices; we want to see Tanzanians and East Africans including other Africans flocking to Zanzibar.

We market our products and services to local and international governmental and private institutions and individuals.

We will educate our customers to buy from us by using different media, word of mouth to IT, radio and by attending travel shows throughout the
year.

Our target market are locals and expatriates alike on the island and the mainland Tanzania, tourists from within Africa itself and the remaining
international visitor for leisure or business.
More people relocating to Tunguu the new administrative capitol of Zanzibar where our location is. There is a high demand for a professional sport
and entertainment facility on Zanzibar. We are the only facility to offer such a wide variety of facilities at affordable rates.
Zanzibar is becoming very expensive and we shall be able to tap this value for money niche by offering an affordable alternative allowing us to
capture a huge market share.
Apart from the Busara Festival in February and the Zanzibar Film Festival in June every year no other major entertainment event takes place on
Zanzibar giving us a chance to fill this void year round by introducing events to attract a very wide range of customers especially by using local and
international value added resellers/agents.

Business Schedule: 24 Hours per day, 365 Days a year.


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Competition
Out of approximately 100 hotels and resorts on the Island the Average Price For a Double Room is $257.- USD
The Botanic Country Resort can offer an Average Price for a Double Room at $150.- USD

In the Stone Town there is hardly a bar these days where you can buy a beer under $2.50, yet we can offer this same beer at $1.60, and still make a
decent profit. As a matter of fact there is hardly any bars anywhere as the licensing laws have been tightened including the playing of open air discos
in unplanned and unapproved locations. Between the Stone Town and the East-South Coasts there is a single small guest house the Sai Bar or as
they are trying to rename it Fuoni Lodge and nothing else apart from our selves.

We foresee opportunities ahead as larger companies start coming into the market as is the case now on Zanzibar, their running cost, products and
services are higher allowing us to be in a unique position of servicing the middle class market from start to finish.

The competitions business is currently steady and raising slowly with more and more establishments to be opened in the future.

Very few of them are targeting the local market from within Tanzania and from neighboring countries, let alone the entertainment business..
Our service will be better, faster and cheaper due to the fact that our workers will be performing from their hearts to start off with, but we shall have
lower costs of operations due to minimal transport cost to staff, being centrally located to tours and excursions and transport due to our central
location being close to supplies and the market. We are also learning from the competition and their methods of marketing and have a good idea
what works and what does not. Business on Zanzibar Island is increasing and it looks like there will be a bright future development in many fields
with the dawn of a Government of National Unity.

The Botanic Sport and Entertainment Resort offer superior Value for Money.
No one is really going for the local grass roots market, it is a niche.

There are several high class resorts on the Island of Zanzibar offering very expensive services and a lot of lower class guest houses offering sub
standard services. We shall find our own "niche" by offering a middle class facility but with quality and more to see and do activities.

There is only a handful of companies offering services to Zanzibar and they are very expensive, whilst we plan to offer a package which costs less
then theirs with more days and nights and with extra services such as full board and tours included.

The cheaper end of the market one can forget, they are sub-standard and most clientele have to put up in very basic accommodation without
breakfast.

The competition has the advantage of having been in the business for numerous years but have to offer their services through a third party, they
usually do not have their own business as a travel agent or tour operator to offer more then just their own property or in the other case they do not
own property and are selling 3
rd
party property.

The opportunity we have is not a temporary window, we have got the position in location and no steps have to be taken to protect my unique position
as it is unattainable by the competition, due to our location and timing.


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Operations
I shall be overseeing all operations from start to finish delegating to in house staff and outside hired help as needed on a daily basis.
We shall be looking to hire self motivated staff with high qualifications and enough experience in our line of business.
Employees must inspect and approve their work and indicate their approval or rejection of the product we are offering.

Our leased land will provide over 20 acres of hotel / resort development space, if sales growth increases will can innovate and expand on our
present premises in the next 5 to 7 years.

Our staffing requirements are on par with the rest of the industry and our pay and benefits package is appropriate.
We have considered the idea of unionized beach boys getting them organized better so that all sides benefit.

We are in contact with suppliers and distributors and decided know which ones to use
We shall be taking out minimum insurances and making it a priority together with security as we progress.

A contingency plan if some difficulties should occur is in place.

We are taking over an incomplete project and constructing our own facility, equipping it with all machinery and equipments and necessary
implementation costs at a total tone of $2,900,000.- USD.

We shall have approximate $20,000.- USD worth of inventory on hand, kept in stores, and stock controlled to kitchens and bars and foresee having
an operating capital of $100,000.- USD or more.
It makes sense for our business to buy our stock for restaurants and bars on a daily basis for freshness of product and produce the finish product
directly in house. We intend to grow vegetable and fruits including spices and trees for our kitchens use and for our health and healing spa,
medicinal trees such as the Moringa Miracle Tree will be introduced.


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Management Team

I have over 20 years experience in the industry and senior managers will have previously started and successfully managed companies in the
same business.

The current management team can reach the desired goals set by the business and any future needs of management, we will hire new team
members readily available to replace any member of our management team that leaves.

The company will be run by me possibly assisting by a foreign investor with experience in the travel and hospitality business, assisted by a foreign
or local general manager, other key positions being food and beverages, sales, marketing and promotion, administration, accounts and house
keeping all to be filled by highly experienced and qualified employees supported by a head cook, kitchen help, barkeepers, waitresses and
waiters, watchmen and gardeners, housekeepers, a DJ/Electrical, driver and guide.
Risk/Opportunity

Our pricing will be below the norm on the island for a quality resort like ours,

Our product is one not matched as we are the only ones with a unique entertainment facility and golf range and alternative sport and medicine-
healing spa not catered for on the island; we have minimized the risk by establishing a missing part of tourism activities on the island.

Management risks are overcome by finding a strong and experience partner as an investor who also plays a part in management including hiring
qualified experienced staff in all positions and personally overseeing the training and quality of services to be offered.

The product/service truly fills an unmet need in the marketplace.

Having the opportunity to be located where we are, the timing factor of it, with other developments in the area and on the island in general with no
real direct competition will make us fit nicely into the complete diverse master plan for tourism on Zanzibar Island.

We have tried to consider all the possible risks involved and our business does have a contingency plan in place for all of the risks.

The whole concept is unique, who else has thought of developing the countryside of Zanzibar among small wildlife and in a forest with an
entertainment and sport facility with shopping arcades for local and domestic tourism alike offering a wide range of services is a once in a life time
chance.

The financial risks for our business is a delay in finding finance to secure the take over and become operational, otherwise enough collateral and
investment sense is available within our management team to cover all investors and bankers investment and loan.

These risks are minimized due to the fact that we are positioning ourselves to fill a gap which is only going to increase and the opportunity is there
to be flexible enough to survive through any worst-case scenario.

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We are setting up our business not only to rely on the International Market which fluctuates seasonally, but we are going to build a strong local
domestic base of clientele from within Zanzibar and Tanzania mainland but also from neighboring countries and from within Africa itself,
minimizing the risk on dependence on the International tourist, but instead will concentrate on local expatriates within the country and within Africa
itself.

Financial Summary

Our break-even point is.

Formula:
Gross Sales / Revenue $520,409
- Variable Expenses $159,400
- Fixed Expenses $133,637
==========================================
BREAKEVEN POINT $227,372

We do not foresee any potential problems that we are certain our business will face but have allowed for a contingency sum to cover any
unforeseen problems and as usual when a challenge arise it is customary met with humans nature general resilience in getting through the
challenge with the Most High Gods help.


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Recap of our income statement:

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Revenue
520409

680,117

735,988

795,179

865,783

906,668

926,710

944,720

954,012

899,743
Cost of Goods
Sold

66,000

100,000

150,000

150,000

152,000

152,000

160,000

165,000

170,000

185,000
Gross Profit
586,409

780,117

885,988

945,179

1,017,783

1,058,668

1,086,710

1,109,720

1,124,012

1,084,743
Operating Costs
$159,400

$244,911

$338,591

$347,091

$363,591

$371,091

$382,591

$396,091

$414,591

$439,591
Finance & Admin
$106,637

$161,683

$163,566

$178,066

$236,566

$251,066

$263,566

$264,166

$267,261

$295,679
Sales &
Marketing

27,000

52,000

75,000

80,000

85,000

90,000

$92,000

$97,000

$97,000

$105,000
Total Expenses
293,037

458,594

577,157

605,157

685,157

712,157

738,157

756,257

778,852

840,270
Net Income
Before Tax

293,372

321,523

308,832

340,022

332,626

346,511

348,553

353,463

345,160

244,473
Less: Income
Tax

0

0

0

0

57000

71000

79000

77100

79695

76544
Net Income
293,372

321,523

308,832

340,022

275,626

275,511

269,553

276,363

265,465

167,929

Summary of balance sheet:

As of
[Date]
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Assets

$3,472,313

$3,784,864

$3,502,897

$3,627,290

$3,792,352

$3,919,605

$4,055,633

$4,172,550

$4,280,429

$4,339,601

Liabilities

$1,116,128

$1,201,607

$1,201,072

$1,167,134

$1,142,174

$1,088,800

$1,030,317

$952,611

$888,857

$790,879

Equity

$2,356,185

$2,583,257

$2,301,825

$2,460,156

$2,650,178

$2,830,805

$3,025,316

$3,219,939

$3,391,572

$3,548,722

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Financial Summary
Capital Requirements

A further $1,700,000.- USD is needed to start our business.

We have already invested over $1,200,000.- USD (with the actually business value of the company and its assets at hand at over $1,500,000.-
USD by current valuations).
This has been used to acquire the project in its current state with its development of infrastructures, buildings and land itself on the location
including all relevant government approvals through the Zanzibar Investment Promotion Agency and other private and governmental concerned
official parties.

We also own an adjacent plot with a large managers house on it including other staff accommodation and this would also provide us with further
parking space and over 35 shops are being developed on it including a night club and childrens river pool around the club area, could also breed
fresh water fish for our restaurants, giving the club area inside a fort look with walls and bridges around it. A further private pool and Jacuzzi is also
planned to the back of the managers house.

We have invested in the business to date a total of $1,200,000.- USD being the projects value and require funds to complete the sole take over of
the project assets and liabilities, funds requested will help us achieve this, together with the final implementation and operation of the facility.

The opportunity is exciting as to have enough capital to implement the concept and vision which is a once in a life time chance to show how
beautiful the interior of the island is and that alternative tourism is also possible with bigger rewards than can be imagined.

Investors and loan officers will get their money back, either through repayment of a long term loan $850,000.- USD with its full interest after a 10
year period, collateral will be available, the remaining $850,000.- USD we expect to raise from investors who will be offered to receive dividends
who can also be repaid in 10 years or less, those investors wishing to have an early exit of their investments can already be pai d back after a
three year period. New investors can also come in replacing the ones that wish to pull out of the business.


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Repayment:

Loan Repayment:

Period: 10 Years
Source: Business Revenue/Cash Flow
Collateral:
-Inventory 144,750.00 USD
-Equipment & Machinery 84,700.00 USD
-Furniture & Fixtures, Office equipment & Computer 82,290.00 USD
-Vehicles 96,000.00 USD
Outside investor 850,000.00 USD
Equity in Real Estate 2,273,000.00 USD

Total 3,530,740.00 USD

Other possible exit strategies will include:

The sale or merger of our company
A management buyout
An IPO or private placement

Source of funds:

Source Amount Percentage
Owners contribution 1,200,000.- USD 41.38
Term loans 850,000.- USD 29.31
New equity financing 850,000.- USD 29.31
Total 2,900,000.- USD 100


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Use of funds:

Category Amount Percentage
Buying the Business/Project 1,500,000 51%
Building & Construction 455,000 17%
Repair & Renovation 278,000 10.%
Infrastructure & Landscaping 40,000 1.5%
Inventory 144,750 5%
Equipment & Machinery 84,700 3.16%
Furniture & Fixtures 82,290 2.88%
Marketing Materials 29,700 0.99%
Working Capital 100,000 3.3%
Operational Start Up Costs 46,000 1.53%
Vehicles 96,000 4 %
Opening Advertisement Costs 2,000 0.07%
Contingency 25,000 1%
Packaging, Freight and Clearing fees 20,000 0.75%
Total 2,903,440.00 USD 100%


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1. Business Description

The name of the company is Zanzibar Magic Company Limited located on Zanzibar Island, Tunguu and we plan to implement and operate the
Botanic Country Resort in the middle of the countryside of the Island.

It is a partnership of family members, father and grown up children as a limited liability company.

The company is already registered on Zanzibar Island with certificate of incorporation No. L1375.

Our current stage is start up.

The product has been tested, lease is signed, suppliers arranged; staff such as gardeners and watchmen are on standby including builders.

Myself as the managing director shall oversee all operations assisted by another investing director and key employees starting with a general
manager and in departments of food and beverages, sales, marketing and promotions, administration and accounts who in turn shall be supported
by a head house keeper and chief cook with the backing of further junior staff in all departments.

We expect sales volume of close to $500,000.- USD for the first full year of business 2012 to 2013, raising up to $700,000.- USD in the second
year and building up to and over $800,000.- USD in the fifth year, $900,000.- USD in the 7
th
year followed by over $1,000,000.- USD in years 8, 9
and 10.

There are currently 1 managers and 2 employees at the facility. Our target needs in a year for the facility are 5 managers and approximately 31
employees, the facilities are on 20 acres land in the middle of Zanzibar Island.

I am a resilient and experienced businessman of over 20 years with a great concept and collateral in land buildings and assets. I am hard working,
honest and currently sit on a gold mine in the middle of Zanzibar Island.

Our target market is the whole cosmopolitan citizenship of the planet and the local domestic market that competitors have not seriously taken into
account in most of the cases.

Zanzibar is changing very fast and we see more and more tourist arrivals in the next coming 20 years, we are well placed in the middle of the
island to capitalize on this growth with our unique project, we are just not another beach hotel anywhere in the world, we are on Zanzibar Island
doing something no one else is doing and the competition will not find it easy to copy and imitate.

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1.1 Industry Overview

Currently we foresee Zanzibar become a very expensive holiday destination, remember it is an island, the population is exploding and tourist
arrivals are increasing with more foreigners even trying simply to come and live on the island. Not only are land rates going to go up tremendously
in the future, but hotels and resorts including many of the good located restaurants and cafes will simply be charging European rates and in some
cases even more trying to achieve 5 star services and leaving behind a wide empty gap between themselves and the lower end of the market in
not so good locations, this is where we fit in with our great new location, lots of virgin land to expand with new ideas and concepts catering to a
larger market of locals, expatriates and visitors.

There is no multi purposely built entertainment complex on Zanzibar to cater for locals and visitors alike, we have an opportunity to cater for a
large cross section of clients when it comes to entertainment and its related services on Zanzibar. Where does one go and shake a leg on
Zanzibar.

Source: Zanzibar Magic Company Limited January 2011
Alongside the policy of trade liberalization, in the late 80s Zanzibar sought to utilize its historical advantage by attracting visitors to the spice island.
For the benefit of our readers, Zanzibar was mostly closed to visitors for the period after the revolution of 1964 until few years ago. It was equally
difficult for a Zanzibari traveling abroad due to strict passport procurement procedures instituted by the Tanzanian government and a security
cordon that was meant to protect the country from counter- revolutionary elements.
During that dark period of Zanzibar's history, other countries in East Africa notably Kenya and island states in the Indian Ocean advertised their
tourism industry to the Western world bringing in thousands of tourists annually. For example, Mombasa, which shares similar history as Zanzibar
became a popular tourist destination and completely masked the potential of the latter.
Zanzibar's tourism potential emanates mainly from its rich history, the stone town, and the crystalline sandy beaches that fills its seashores. There
are some who contend that these features are not unique to Zanzibar and that our neighbors perhaps have an advantage due to their proximity to
rich wild life. Yet others mention the clove industry and marine resources as being features that keep Zanzibar at par with the potential existing
elsewhere in the region. In any case, Zanzibar seems to have find its niche in the tourism industry and at present close to 100 000 tourists visits
the archipelago annually. This is largely a result of its decision to open up to foreign investors who have built hotels and resorts all around
Zanzibar.
The benefits of tourism to Zanzibar's economy are difficult to measure. There are conflicting arguments where some mention of positive link
between tourism and other sectors of the economy. Supporters often cite employment opportunities and higher prices for goods and services as a
result of the demand created by the incoming tourists. Opponents view tourism industry as being the cause of cultural erosion in Zanzibar and the
source of all evils. Prostitution, drugs and crimes have increased tremendously in the last two decades. Above all, opponents are of the opinion
that Zanzibar does not directly benefit from tourism because most of the visitors pay directly to foreign agencies in their respective countries
before beginning their journey to the spice island. The only visitors who seem to pay directly to local agencies are the so called "backpack
tourists", whose expenditure while in the country is very minimal.


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Source: Zanzibarnet Forum http://www.zanzinet.org/zanzibar/economy/sekta.html
Tourism 2020 Vision
Tourism 2020 Vision is the World Tourism Organization's long-term forecast and assessment of the development of tourism up to the first 20 years
of the new millennium.
An essential outcome of the Tourism 2020 Vision are quantitative forecasts covering a 25 years period, with 1995 as the base year and forecasts
for 2010 and 2020.
Although the evolution of tourism in the last few years has been irregular, UNWTO maintains its long-term forecast for the moment. The underlying
structural trends of the forecast are believed not to have significantly changed.
Experience shows that in the short term, periods of faster growth (1995, 1996, 2000) alternate with periods of slow growth (2001 to 2003). While
the pace of growth till 2000 actually exceeded the Tourism 2020 Vision forecast, it is generally expected that the current slowdown will be
compensated in the medium to long term.

UNWTO's Tourism 2020 Vision forecasts that international arrivals are expected to reach nearly 1.6 billion by the year 2020. Of these worldwide
arrivals in 2020, 1.2 billion will be intraregional and 378 million will be long-haul travellers.


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The total tourist arrivals by region shows that by 2020 the top three receiving regions will be Europe (717 million tourists), East Asia and the
Pacific (397 million) and the Americas (282 million), followed by Africa, the Middle East and South Asia.
East Asia and the Pacific, Asia, the Middle East and Africa are forecasted to record growth at rates of over 5% year, compared to the world
average of 4.1%. The more mature regions Europe and Americas are anticipated to show lower than average growth rates. Europe will maintain
the highest share of world arrivals, although there will be a decline from 60 per cent in 1995 to 46 per cent in 2020.

Long-haul travel worldwide will grow faster, at 5.4 per cent per year over the period 1995-2020, than intraregional travel, at 3.8 per cent.
Consequently the ratio between intraregional and long-haul travel will shift from around 82:18 in 1995 to close to 76:24 in 2020.

Source: http://www.unwto.org/facts/eng/vision.htm


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World Travel & Tourism Council Forecasts Subdued Growth For 2010

World GDP fell by 2.1% in real terms, with developed economies - a major source of demand for Travel & Tourism - the most severely affected.

Households curtailed leisure travel plans, substituting lower-cost short-haul and domestic travel for more expensive long-haul trips, and
corporations reduced business travel budgets.

But long-term prospects remain bright
Travel & Tourism is one of the world's most important sectors and employers and has been one of the leading growth sectors since the World
Travel & Tourism Council (WTTC) first started measuring Travel & Tourism's economic impact 20 years ago.

"But, as was the case with other sectors, it was hit hard by the credit and housing market collapses last year that triggered the deepest recession
since the Great Depression," said Jean-Claude Baumgarten, WTTC's President & CEO, launching the Council's annual research results at ITB
Berlin today.

World GDP fell by 2.1% in real terms, with developed economies - a major source of demand for Travel & Tourism - the most severely affected.
Households curtailed leisure travel plans, substituting lower-cost short-haul and domestic travel for more expensive long-haul trips, and
corporations reduced business travel budgets.

"Within the Travel & Tourism sector itself, investment plans were shelved or delayed," Baumgarten said, "even in some previously dynamic,
expanding destinations. Finally, the A(H1N1) influenza pandemic instilled a fear of travel in many markets, at least until the less virulent nature of
the disease was recognized, and government immunization programs got underway."

As a result - and despite the resilience of some, notably Asian, emerging economies - activity and employment contracted across the sector.
Global Travel & Tourism Economy GDP declined by 4.8% in 2009 and this caused the loss of almost 5 million jobs - or 5.6 million since 2008. All
regions experienced significant contractions in visitor arrivals, spending and Travel & Tourism Economy GDP, and Travel & Tourism investment
declined by over 12%. Only residents' spending on domestic trips increased, and that was by a mere 0.7% in real terms.

235 million employed in Travel & Tourism worldwide, despite the downturn
Nevertheless, even in such a depressed year for activity as 2009, Travel & Tourism still employed over 235 million people across the world - 8.2%
of all employment - and generated 9.4% of world GDP.

The global economy has now moved into a recovery phase, although the pick-up in developed economies is expected to be gradual as
households, corporations and governments all battle to rebuild their balance sheets.

"Despite recent encouraging short-term indicators of tourism activity, the recovery in world Travel & Tourism is expected to be muted,"
Baumgarten warned, "with both firms and households examining travel plans carefully and continuing to limit expenditure. Spending in real terms
is expected to increase by a mere 1% - while business travel spending will again decline, by nearly 2%.

The recovery should gain momentum through 2010 and 2011


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Given current credit conditions and delays in restarting large projects, Travel & Tourism Investment is also expected to decrease for the second
consecutive year, by 1.7%. Thus, Travel & Tourism Economy GDP is forecast to grow by just 0.5% in 2010 overall. But stronger second-half
momentum will continue into 2011 to boost growth next year to 3.2%.

In the longer run, Travel & Tourism will sustain its leading role in driving global growth, creating jobs and alleviating poverty. Emerging economies,
in particular, are expected to be engines of growth, boosting international travel - with China alone set to provide almost 95 million visitors for other
destinations by 2020 - and also generating an increasingly vibrant domestic travel sector.

"But developed economies will continue to dominate global Travel & Tourism for the foreseeable future," Baumgarten noted. While many are
mature markets reaching a ceiling in terms of propensity to travel, a growing preference for, and priority focus on, leisure is expected to provide
clients for new destinations once consumers fully regain confidence.

"The popularity of short breaks - both domestic and international - will continue to increase. And innovation by the Travel & Tourism industry will
create new products and markets," he said.

Overall, the Travel & Tourism Economy is forecast to grow by 4.4% per annum in real terms between 2010 and 2020, supporting over 300 million
jobs by 2020 - ie 9.2% of all jobs and 9.6% of global GDP. This confirms that Travel & Tourism will continue to grow in importance as one of the
world's highest-priority sectors and employers.

Source: http://www.travelindustrywire.com/article44436World_Travel___Tourism_Council_Forecasts_Subdued_Growth_For_____.html


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ITB World Travel Trends Report 2010
Economically speaking, the international travel industry cannot afford to do without luxury travelers. Despite a serious drop in the volume of luxury
trips costing 2,500 Euros and more, so-called luxury travelers and the money they spend continue to occupy a significant share of the travel
market. These are the findings of the ITB World Travel Trends Report 2010, compiled by IPK International and commissioned by the worlds
leading travel trade show ITB Berlin.
In 2009 travelers from Europe capable of spending relatively large sums per trip, more than 2,500 Euros, made up only 5 per cent of the travel
market. However, the money they spent represented 27 per cent, despite wealthy holidaymakers being worst affected by the economic downturn.
Luxury travel declined by 18 per cent, more than any other segment of the market.
The number of trips in the medium-priced travel category (750 to 2,500 euros per trip) fell by nine per cent, representing 33 per cent of trips
overall, with spending in this segment accounting for 47 per cent of the market. The number of trips undertaken by holidaymakers who spent a
maximum of 750 euros fell by four per cent, still 62 per cent of the overall travel market. However, they accounted for only 26 per cent of overall
spending.
Dr. Martin Buck, Director of the Travel & Logistics Competence Center at Messe Berlin: The findings are clear on one thing: despite its decline,
the luxury travel market is due to become even more hotly contested. The winners will be destinations, airlines and travel operators who are
conscious of the exclusive needs of a well-heeled clientele and are capable of tailoring their products accordingly.
The financial gap becomes even wider when one considers travelers in the extremely wealthy bracket. According to the report they are capable
of spending up to 500 times the average holidaymakers amount on overnight hotel accommodation. Highly personalized and individual products
are required to continue to attract this audience. The travel industry will come under huge pressure to satisfy this market segment, added Dr.
Martin Buck.
Source: http://www.breakingtravelnews.com/news/article/itb-world-travel-trends-report-2010/
Full Report of World Travel 2010 in appendix.

http://www.itb-kongress.de/media/itbk/itbk_media/itbk_pdf/plugin-worldttr_2010_2011.pdf

http://www.itb-berlin.de/media/itb/itb_media/itb_pdf/worldttr_2010.pdf


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ITB travel report gives grounds for optimism
World travel numbers increased by 5% in the first eight months of this year and should hit a record high for the year, defying the gloomy economic
outlook reports Travel Weekly.
The more positive than expected outlook comes in a report for the European Travel Commission.
The figures, from German research firm IPK International, form the basis for the ITB World Travel Trends Report published at the end of last week.
The report was presented to the European Travel Commission in November at an annual forum in Pisa.
IPK reports international travel rose 5% year-on-year up to August. However, it notes: There has been a noticeable slowdown in travel in the last
few months of 2011".
Average spending per night worldwide rose 4% year on year and spending per trip by 2%.
The report suggests there was a 2% increase in outbound trips from the UK in the first eight months of the year, in contrast to the 4% decline in
travel from the UK that IPK recorded in 2010 and a 12% drop year on year in 2009.
IPK reported a mere 1% rise in outbound travel from Germany this year.
The biggest growth was in the Asia- Pacific region where there was a 6% rise in the first eight months of 2011, despite a 30% decline in travel to
Japan.
IPK suggests more than eight million travellers switched destinations this year primarily because of events in North Africa and the tsunami in
Japan, but also because of unrest in Greece.
The research firms chief executive Rolf Freitag predicted an increase of 3%-4% in international trips in 2012. Freitag said: The outlook can be
described as cautiously optimistic but with high levels of uncertainty.
The IPK European Travel Monitor is based on research among 100,000 interviewees across 13 European markets.
Source: Travel Weekly http://www.sharetimemagazine.com/section-blog/27-industry-news/388-itb-travel-report-gives-grounds-for-optimism-

International Tourist Arrivals back at pre-crisis peak level Madrid, Spain, 09 November 2010

Results through August 2010 prove that international tourism continues to recover from the decline of 4.2% suffered last year under the impact of
the economic crisis. In the first eight months of this year, the number of international tourist arrivals exceeded the record achieved during the same
period of the pre-crisis year 2008. According to the latest issue of the UNWTO World Tourism Barometer, worldwide arrivals between January and


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August 2010 totaled 642 million, some 40 million more than during the same months of 2009 (+7%) and 1 million more than in the same period of
the record year 2008. Based on current trends, the number of international tourist arrivals is projected to increase in the range of 5%-6% over the
full year. In 2011, growth is expected to continue at a more moderate pace, at around the long-term average of 4%.

Emerging destinations continue to lead growth while Europe recovers at a slower pace

Worldwide, international tourist arrivals grew by 7% in the first eight months of 2010 compared to the same period of 2009. Results are positive in
all world regions. Emerging economies however continue to lead the way, growing through August at a rate of 8% compared with 5% for advanced
economies.

July and August, the traditional high-season months of the Northern Hemisphere, clearly set new records, attracting respectively 112 million and
108 million international arrivals. These 220 million represented an extra 8 million arrivals over arrivals in the peak year 2008, and 12 million more
compared with the crisis year 2009. Results were strongest in March (+9%), May (+11%) and June (+9%), in contrast to the seriously negative
trends during those same months a year earlier. April showed the weakest results (+2%) following the closure of European airspace due to the
Icelandic volcano's ash cloud.

Although recovery is still lagging in parts of Europe and the Americas, many destinations are already showing real growth and setting new records.
Asia and the Pacific has once again shown resilience and a strong capacity for recovery. The region was caught quite early and suddenly by the
economic crisis but was also the first to show signs of recovery, posting an impressive 14% growth in international arrivals through August 2010.
Compared with the pre-crisis year of 2008, the region has already gained an extra 10 million international tourist arrivals. Most destinations have
registered double-digit growth rates, many even above 20%.

Growth was also strong in the Middle East (+16%), although this was on a very depressed first eight months in 2009. Africa (+9%), the only
region to show growth in 2009, maintained the momentum, further helped by the worldwide publicity created by the FIFA World Football Cup
hosted by South Africa.

In the Americas (+8%), growth has been strong in North and Central America (+9% each). South America (+7%) is on a par with the worldwide
average, while the Caribbean (+3%) is showing a lower rate of growth.

Europe (+3%) is recovering at a slower pace, due to the uneven economic recovery and the impact of the volcanic ash cloud in April. However,
most destinations reported positive figures for the period May to August, in particular in Western Europe (+4%), Central and Eastern Europe (+4%)
and Southern and Mediterranean Europe (+2%). Northern Europe (-3%) is the only sub-region in the world still registering negative results, pulling
the average of the region down.

Stronger than expected growth confirms the resilience of the tourism sector
As on previous occasions, such as after the 9/11 attacks in 2001 and the 2003 SARS outbreak, tourism has again confirmed a strong capacity for
recovery. Following a decline of 4% in international tourist arrivals in 2009, the sector is showing real growth and is expected to beat previous
records by the end of 2010.


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These results reinforce the message that we have been underscoring since the outbreak of the global crisis at the end of 2008 that tourism is
one of the most dynamic economic sectors and a key driver in creating much needed growth and employment, said UNWTO Secretary-General,
Taleb Rifai, presenting these figures during the UNWTO Ministers Summit at the World Travel Market (London, UK). Tourism has been seriously
impacted by the global crisis, but less than other export sectors, and is currently rebounding faster and more robustly. We call upon governments
worldwide, as well as multilateral forums such as the G-20, to place tourism higher on their agendas as the sector can contribute to our common
objectives of sustaining recovery, regaining jobs and promoting sustainable development," he added.

As previously stressed by UNWTO, risk factors which can negatively impact the pace of recovery remain in many advanced economies, notably
budget constraints to balance public deficits in main source markets and the central issue of unemployment. Just recently, the International Labour
Organization (ILO) warned that the job crisis is set to continue through 2015. The latest figures presented by UNWTO highlight tourism as one of
the most promising sectors to contribute to the unemployment challenge, considering that job creation in tourism tends to outgrow that of other
sectors.
In spite of tourisms proven contribution to the economy," Mr. Rifai recalled there has been an increased temptation to introduce and increase
taxation on travel, particularly on air transport. These impediments seriously affect our capacity to generate jobs and stimulate economic growth,
namely through export earnings that are crucial to a stable economic recovery.

Outlook for the full year 2010 and 2011
The positive trend during 2010 is reflected in the steady rise of the UNWTO Tourism Confidence Index. A clear majority of the members of the
UNWTO Panel of Experts evaluated the past eight months of 2010 as better or much better. The rating of prospects for the period September-
December has also further improved, and is up for the fifth consecutive period from the deep trough a year ago.

So far the rebound in arrival numbers has turned out to be stronger than initially anticipated. The 50 countries that already have reported
September data, together with the air transport data, clearly point to another sound month. For the last quarter of the year the pace of growth is
expected to slow down, as it compares with an already positive last quarter of 2009. Based on the current trend, international tourist arrivals are
projected to increase in the range of 5%-6% for the full year of 2010, thus exceeding 2009's total by up to 50 million, and even improving on the
record, pre-crisis 2008 count by up to 10 million. First estimates for 2011 point to an increase in international tourist arrivals worldwide in the range
of 4% to 5%.

Source: World Tourism Organization http://www.unwto.org/media/news/en/press_det.php?id=6961&idioma=E


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1.2 Company Description

Zanzibar Magic Company Limited is a limited liability company.

The business is a takeover of an older non operational business wound up and liquidated in the court of law on Zanzibar, Vuga and a second
piece of land neighboring the main business location.

We are in the tourism business provided accommodation, food and drink, with sports and entertainment, commercial shop and office space,
safaris, tours and excursions for leisure or business.

Tourism is travel for recreational, leisure or business purposes. The World Tourism Organization defines tourists as people who "travel to and stay
in places outside their usual environment for more than twenty-four (24) hours and not more than one consecutive year for leisure, business and
other purposes not related to the exercise of an activity remunerated from within the place visited."

Tourism has become a popular global leisure activity. In 2008, there were over 922 million international tourist arrivals, with a growth of 1.9% as
compared to 2007. International tourism receipts grew to US$944 billion (euro 642 billion) in 2008, corresponding to an increase in real terms of
1.8%.

As a result of the late-2000s recession, international travel demand suffered a strong slowdown beginning in June 2008, with growth in
international tourism arrivals worldwide falling to 2% during the boreal summer months.

This negative trend intensified during 2009, exacerbated in some countries due to the outbreak of the H1N1 influenza virus, resulting in a
worldwide decline of 4% in 2009 to 880 million international tourists arrivals, and an estimated 6% decline in international tourism receipts.

Tourism is vital for many countries, such as Zanzibar due to the large intake of money for businesses with their goods and services and the
opportunity for employment in the service industries associated with tourism. These service industries include transportation services, such as
airlines, cruise ships and taxicabs, hospitality services, such as accommodations, including hotels and resorts, and entertainment venues, such as
amusement parks, casinos, shopping malls, music venues and theaters.

Our primary office including facility will be located at Tunguu, Maili Kumi on Zanzibar Island due to the large and lush 20 acres plot that we have
acquired on a good tarmac road from the Stone Town where 70% of all tourists drive past and it is also the new administrative part of Zanzibar
with offices, businesses and private residential houses coming up not to forget the Houses of Parliament, Vice Presidencies Offices and
residence, 2 universities and other projects.

Our facility on a 20 acre plot will include an entertainment area with a open air hall and 50 shops, 4 restaurants, 4 bars, 3 stages, 1 bakery, adult
and child swimming pools, 1 squash court, 1 golf range, 2 tennis courts, adventure playground, 1 basket ball and volley ball court, spa and gym
with administration offices and a conference room and 2 water towers, initially 10 bungalows with 20 rooms with the option to expand to 20
bungalows with 40 rooms in the future and a breakfast area including a workshop for repairs and services, 4 watchmen huts.


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Gardens with small wildlife and a wide selection of different vegetation, extinct fruits such as pilipili doriani- (looks like a yellow grape with one
large seed in it.

A properly constructed coconut palm roof should have a life span of 10 years or longer, we do expect some repairs and renovations within a 10
year period which can easily be cover from our operating costs.
Amortization Schedule

Year Interest Principal Balance

2012 $24,309.36 $38,799.62 $811,200.38
2013 $38,988.51 $69,198.32 $742,002.06
2014 $35,448.19 $72,738.63 $669,263.43
2015 $31,726.75 $76,460.08 $592,803.35
2016 $27,814.90 $80,371.92 $512,431.43
2017 $23,702.92 $84,483.90 $427,947.53
2018 $19,380.57 $88,806.26 $339,141.27
2019 $14,837.07 $93,349.76 $245,791.51
2020 $10,061.12 $98,125.71 $147,665.81
2021 $5,040.82 $103,146.00 $44,519.80
2022 $558.04 $44,519.80 $0.00

Loan Summary

Monthly Principal & Interest $9,015.57
Total of 120 Payments $1,081,868.26
Total Interest Paid $231,868.26
Pay-off Date May, 2022


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Mission Statement

We are a service business engaged in the hotel, travel and entertainment industry, including sports, health and healing and education. We
specialize in online bookings and reservations for Zanzibar and Tanzania and we are starting a new type of resort that features a lot of
entrainment and shows from live bands, local and foreign, film/cinema, theater and sport travel being our own niche.

The mission of Zanzibar Magic Company Limited regarding tourism development on Zanzibar is To be the most exotic, diverse resort facility in
the Indian Ocean Region. Exotic as we are wrapped in a mysterious Arab/African ambience and flavored with palm fringed, tropical beaches.
Diverse in terms of products, activities and attractions, there by combining various types of tourism, e.g.,

Nature/Eco
Beach
Cultural & Tradition
History & Archaeology
Sport & Water sports
Honeymoon
Performing Arts
Conference
Incentive
Culinary (Spices)
Faith
Medical (Herbs)

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1.3 History and Current Status

Daud John Kiango was a director in Exotic Promotions Company Limited, which has been voluntarily liquidated in the court of law on Zanzibar.
Mr. Daud John Kiango has formed a new company which includes his teenager children and without his old partner and is about to acquire on his
own the now defunct Exotic Promotion Company Limited in a takeover, including a second plot with a large managers house on it and staff
accommodation facilities adjacent to the project plot.

Mr. Daud Kiango is in the final process of inheriting the old companys assets and liabilities and expects his new company, Zanzibar Magic
Company Limited to take over this project which is on a startup status, but can go into operation almost immediately with its basic infrastructure..

We are already serving food and drinks whenever we want with festivals and music shows taking part, interest for shops is there and clients
already want to secure shop and accommodation facilities. The managers House currently doubles as a guest house with clients already
frequently booking.

Infrastructure is already in place with standing entrance of water tower and entertainment area, shops and bars, kitchen and bakery, pool area is
also semi developed with its conference area including the workshops, roads and sewage is well developed and car parking including electricity
and water supply. A second plot with a large managers house and other accommodation rooms is also available that provides extra parking space
to clients. Staff accommodation is also on standby.

1.4 Goals and Objectives

Our surveys have found that Zanzibar is sadly lacking a quality Sport, Educational and Entertainment Resort and Alternative Health and Healing
Spa easily accessible to regional and international tourists, Local Zanzibar residents and expatriates alike.

Combining our marketing skills, location and experience it is our goal to capitalize on the ever growing demand for such a facility. Our market
research shows that we can achieve our goals and realize a profit within a number of years.

We expect to be partly operational before late -2012 with the entertainment area complete consisting of 9 shops, entertainment stage and dance
floor, bars and restaurants, golf range and workshop including 40 odd shop and office spaces of approximately 16m2 per shop, followed by
swimming pools and sports including accommodation 20 rooms, reception and conference center including spa completed mid next year and be
completely fully operational in 2 years time.

The Vision of Zanzibar Magic Company Limited regarding tourism on Zanzibar is To become one of the top tourist destinations on the Island
and in the Indian Ocean, offering a mid market, high quality product across the board within the coming 10 to 17 years


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In doing so, it will:

Improve the quality of life of the population
Stimulate economic growth
Preserve the social and cultural fabric
Contribute to the alleviation of poverty
Raise service levels to international accepted standards
Expand domestic tourism for Zanzibaris and Tanzanians including African and International visitors
Protect and conserve fragile ecological systems
1.5 Critical Success Factors

Factors to make our business a success is quick implementation of the project after immediately securing finance.

We do not have any major competitors on the island doing a resort project featuring entertainment and sport with alternative medicine that works.

Funding will help us buy the liquidated companies assets and liabilities and the complete the project in a very short period of time, with business
already operating before late-2012, official soft opening for late 2012.

Once the facility is ready to operate and opens for business any client walking in will be left with awe, spreading the word what an unbelievable
tantalizing place they came across in the middle of Zanzibar, this is what we are aiming for to be a success.

Integrating our local community into areas where they have expertise in providing different services on our land, going for the local governmental
and administrative including private businesses on the island and on Tanzania mainland as our clientele, starting with our very neighborhood.

Finding the right investors and loan suiting our needs with the right people to surround ourselves to jointly manage and perhaps become full time
share holders after seeing that we are compatible partners after 3 to 5 years by mutual consent is of upmost urgency.


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1.6 Company Ownership

The company is owned by Daud John Kiango and his 3 teenager children aged 21, 18, 15 years old.

Mr. Daud John Kiango intends to be the directing manager of the company and intends to find experienced inventors to jointly manage the
companies businesses, one or more of the teenager children will possibly cover a position in Sales, Marketing and Promotions in the near future.

As of January 2011
Name Title (if Applicable) Number of
Shares
Percentage of
Ownership
Daud John Kiango Managing Director 85 85
Lubayna Kiango Trainee Director 5 5
Nabil Kiango Trainee Director 5 5
Annalisa Ingeborg Kiango Trainee Director 5 5
TOTAL 100 100

1.7 Exit Strategy

Repayment:

Period: 10 Years
Collateral:

Total 3,530,740.00 USD


A management buyout

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2. Products / Services

We are a service business engaged in the hotel, travel and entertainment industry, including sports, alternative health-healing and education
specializing in online bookings and reservations for Zanzibar and Tanzania in general.

Our surveys have found that Zanzibar is sadly lacking a quality sport, educational and entertainment resort and an alternative herbal wellness spa
easily accessible to tourists, local Zanzibar residents and expatriates alike.

Combining our marketing skills, location and experience it is our goal to capitalize on the ever growing demand for such a facility. Our market
research shows that we can achieve our goals and realize a profit within 5 years.

Our product and services include:

10 Duplex Bungalows with 20 Rooms for guest accommodation, with future plans to expand to 44 rooms already in the approved architectural
drawings. The bungalows will offer exclusivity and a safari villa type of atmosphere in out lush gardens with small wild life.

4 Restaurants, serving a variety of local and international cuisine with a separate breakfast area for in house guests, including a bakery for hour
own guests pleasure and for outside demand to private individuals and other hotels and resorts.

Events Taarab Square- Music and Entertainment, Cinema and Theater, a large hall with stage and dance floor semi outdoor venue, no serious
competitor is pursuing this market on the island. There will be a minimum of 3 stage and dance areas.

4 Bars With 1 or 2 of the longest on the island and nice and round, one of which has natural stone rock as its display in the middle of the
counter.

Bookings/Reservations Travel arrangements- already operational over the internet for safari bookings, flights, accommodation and all oter
related travel services such as car hire, flights, weddings and honeymoons.

Sport tuition- Golf, Tennis, Fitness Training, Yoga, Martial arts you name it, all is possible. Local teachers are available.

Golf Range The only place to practice your swing as there is no serious competitor offering golf on the island yet, they all have big plans but not
the finance to seriously invest in what it takes for any kind of serious golf venture so far on the island. A friend of mine is a pro and is available on
the island to teach golf.

50 Shops-Stalls-Offices for Rent The shops-offices some of which are interlocking and will present quality assortments of goods and services
not available on the island, including stalls for handicrafts and artists giving many locals a chance to own a business premises.

Arts and Crafts Zouk- Would turn surrounding areas of the shops into handicraft workshops with goods sold directly from the artists who would
operate their own outlets.


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Spa/Massage Parlour- Will be set up in close proximity to the swimming pools, healing the un healable and incurable diseases. Karate and other
martial arts will also be offered a local teacher is already available.

Car / Bicycle Hire From our central location you are within easy reach of all coasts and excursion routes including the Stone Town. Out bike
itinerary routes will be unique with the guide world famous in no time.

Conference Center with Business/Secretarial Services To accommodate close to 40 people indoor, outdoor conferencing will also be on offer.
Our large Taarab Square can of course easily hold up to over 1000 people for any extra large conference.

Swimming Pools- 3 interlocking water holes with a bridge across the middle pool with is a pond for small fish and plant life.
1 private swimming pool at the back of the managers house with Jacuzzi, including a large circular childrens pool in the shape
of a river around the club area on the managers house plot.

1 Squash Court

2 Tennis Courts -

1 Volley Ball, Badminton and Basket Ball Court -

1 Fitness center will be two separate rooms one for females and the other for males due to the culture of the island

Table-Sport football, pool/billiards tables, ice hockey, darts,

Adventure Playgrounds- Along the footpath from the entertainment area to the swimming pools a winding foot path between tennis courts and
basketball/volleyball courts a modern adventure playground will be set up which no competitor has done yet.

ATM- Would convince one of the banks on the island to install an ATM on our facility and in theory any smart banker reading this should even
consider having a branch opened at the Botanic Resort to capture new clientele in this fast upcoming new city of Zanzibar, we being there number
one client. Makes business sense for all parties involved.

Our products and service address the market place needs of a big enough venue on the island to hold different cultural and festive activities not
provided by our competitors to locals, expatriates and tourists in one place at a reasonable price.

We expect to have a lot of local clients including companies, institutional and governmental clients, apart from private international visitors to
students, we shall court some business like shops to come and open branches at the Botanic Resort, many brand names only operate on the
mainland.

The Botanic Country Resort will be very competitively priced.


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We are offering bigger rooms with better services including outdoor or indoor dining with a larger selection of menus from around the world at
more reasonable rates and quality then are competitors are benefiting the client. We are offering services and experiences not offered by others
on the island yet.

Our service is used for business or pleasure including physical and mental satisfaction of improving yourself.

Our pricing strategy will be value for money with a good 60% profit margin.

Mainly local materials will be used for construction of our facilities.

A good entertainment facility with supporting restaurants and bars and accommodation including swimming pools and a golf range are sadly
lacking on Zanzibar and these things are in high demand to satisfy the local and incoming market just from the mainland and neighboring
countries let alone international visitors from further afar.

By midnight the whole Zanzibar Stone Town comes to a stand still, apart from a few local food stands on the roads no other alternative eating
place is available.

We plan to Open 24 Hours a day x 7 Days a Week!!

At least one restaurant of ours shall remain open offering fast food in a complete secure environment; We shall only close for a minimum of 1 hour
at 5am for cleaning!

Other resorts with basic entertainment facilities are an hour or further drive away from the main populated Stone Town and its surrounding areas.

We really have a monopoly as our location is far away from any sensitive cultural differences between tourism and the local population. Very few
liquor licenses are issued or permits for outdoor entertainment, we have all approvals and licensing needed to conduct our business.

Our location ensures you privacy (due to the island culture privacy is a great benefit) which is not available in the Stone Town.

We are reachable from every corner of the island with minimal road transfer times due to our central location.

From the Stone Town 14 km 20 minute leisure drive
From the East Coast Paje Bwejuu 30 minute leisure drive
From the South East Coast Jambiani 45 minutes leisure drive
From East Coast Peninsula Ras Michamvi 45 minutes leisure drive
From Chwaka From Urua 45 minutes leisure drive
From Jambiani South Coast 45 minutes leisure drive
From Makunduchi South Coast 45 minutes leisure drive
From Kiwengwa North East Coast 45 minutes leisure drive
From West Coast Bububu 45 minutes leisure drive


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From North Coast Nungwi/Matemwe 60 minutes leisure drive

We have a wider variety of services in one place and the environment is unspoilt.

Small wildlife is plentiful on the plot with a large area reserved for it. Bush Babies, Black Colobus Monkeys and a second type of monkey know as
kima, Birdlife, Bushbuck- small, Squirrels, Ferrets, Buku- Giant Bush rat, Python and various snakes, monitor lizard, Butterflies, Praying Mantis,
Bats, to mention a few not to forget domestic animals such as cows, goats, chickens and ducks, dogs and cats.

We probably are the only ones with such a large variety of wildlife on our plot outside official nature reserve areas such as Chwaka-Jozani.

The Botanic Country Resort has a very good chance of success together with its sister travel company- Botanic Tours and Safaris, as no time
will be wasted to get them operational (can and do already operate at will upon request on and off with the development we already have) and the
product and service we want to offer is different from the other facilities one finds on the Island and throughout the world in general. It is unique,
not just as a project or as in location, but that it will cater for a very wide range of clientele and partners from the very small to the biggest.

If one goes to a travel agent there are hundreds of catalogues with thousands of hotels worldwide to choose from practically all offering the same
type of product and service.

We are establishing a facility which will offer services and products which are based more on the Culture of the Island by giving customers the
chance to mix with local clientele to experience the hospitality that Tanzanians are famous for, instead of the all exclusive expensive resorts you
find every where else only catering for one type and sort of clientele in an already saturated market.

We are introducing new niche products into Zanzibar and Tanzania in general such as Sports tourism- Golfing and Cycling Holidays, Tennis,
Squash, Badminton, Basket Ball, Volleyball, Handball, Horse riding and Kite-Surfing, Educational and Language Tourism, Art and crafts academy,
Gap Year Travelers, Career Breaks, Volunteer jobs and career Work Abroad Holidays And Volunteers to train staff.

We shall also be specializing in offering Weddings and Honeymoons, Adventure tourism and Safaris. Seminar Groups Business & Conference
meetings and incentive business travel.

We have almost unlimited space for expansion with new ideas having over 20 acres of land at our disposal.

The entertainment area of discotheques, live music, cinemas and theater will be on of the best in the whole of East Africa. A professional sound
system and light show including laser shows with smoke machines and effects, video projection and conferencing equipment shall be installed.

Special meetings, functions, festivals shows and fairs with Travel and Africa themes of groups at such as at the Goethe Institute, Africa Houses
abroad, e.t.c., would be targeted for promotional events as this would get us easily into touch personally with customers with an interest on Africa.

Tourists usually do not fly directly to Zanzibar. Many visit attractions such as Wild Life Game Parks with Safaris to the Selous, Ruaha, Ngorongoro,
Serengeti, Mikumi and Kilimanjaro on mainland Tanzania or adjacent countries, before they come to Zanzibar.


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So marketing the Botanic Country Resort side by side with the rest of Tanzania through Botanic Zanzibar Tours and Safaris make logical sense.

Licensing: Entertainment License
Restaurant and Liquor License
Accommodation/Hoteliers License
Tour Operator/Travel Agents Licenses
Sports Licensing
Educational Academy Licensing
Shops Licensing

Zanzibar Magic Company Limited and the Botanic Country Resort is a Zanzibar Investment Promotion Agency (Z.I.P.A) approved project.

Many foreign and local companies are already in Tanzania which has also entered into bilateral treaties for protection and promotion of foreign
investments with Germany, the Netherlands, Switzerland and the United Kingdom.
2.1 Product/Service Description

Zanzibar Magic Company Limited will be providing the following services:

10 Duplex Bungalows with 20 Rooms for guest accommodation, our rooms are bigger and better designed with split level floors for better
ventilation and have a lounge attached to the bed room with a veranda with a window looking out from the bath tub in the bathrooms.

Air Conditioning in the rooms is thermostatically controlled. The central air-conditioning control is located on the wall in the rooms and can be
adjusted manually. Power sockets in walls and the grounds will be sufficient for a small office to be set up in the lounge, internet and other
equipment can be run at convenience wit adaptors available from housekeeping/reception.

Flat Screen TV- Each room will have a flat screen TV broadcasting international cable and satellite programs.

Check Out Time is 11am, should clients require a later check-out time, this can be arranged at the reception and we may be able to assist you
with a late departure or shower room depending on room availability.

Baby Cot / Baby Sitting will be available from housekeeping, babysitting is charged on an hourly rate.

Baggage Service- For Porter Service and baggage storage, please contact the reception.

Electric Current- Electricity supply in all rooms is 220volts / 50 Hertz

Mini Bar- A complimentary bottle of mineral water will be provided daily and will be replaced in mini bars fridge. A mini bar charge voucher will be
available at the reception desk and for convenience one will be placed on top of the mini bar.


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Room Service- is available.

Safe Deposit Box- Each room will have its own safe located in the closet. Instructions for use are located on the panel. If items are to large
please contact the Duty Manager who will gladly place your valuables in the resorts main safe for safe keeping.

Restaurants, open air serving European and local Swahili dishes, fast food and 5 course diner packages, sushi and other specialties such as
crepes and doner kebab will be offered which our competitors are not offering, 3 restaurants could already be up and running within 6 months with
one fast food are open 24 Hours a day which no one else is offering, by 2230HRS it is hard to find a decent place to eat on the whole island.

Taarab Square Restaurant located in the entertainment area, offering both local and international cuisine, serving breakfast, lunch and diner.

Kipepeo Restaurant located in the beer garden (a local has already made a deposit to hire and run the Kipepeo and is prepared to pay a
years rent in advance as a Swahili bar and restaurant including entertainment) in the forestry area outside the entertainment area and close
to the golf range.

Club Genesis2Zanzibar - a casual dining area offering a light lunch menu, including wraps, pizzas and salads etc can also host entertainment
parties and events surrounded by a river with bridges which children can play in.

Numerous shops will be small cafes will be available with rates starting as little as $10.- USD per sqm with contracts prepared and again a years
rent is going to be paid in advance. People have already started paying in advance to hire commercial business space at the Botanic Resort.

Finally the Swimming Pool and Conference Center Restaurant on 2 floors offering barbeque grill type of cooking overlooking the swimming
pool to mainly serve guests staying in the resort including a small separate breakfast hut is available in the middle of the rooms area serving
overnight guests only mainly breakfast.

A Bakery on site for breads and buns, pizzas and smoked meats and fish shall be available in the Taarab Square and entertainment area.

Events/Entertainment in Taarab Square our entertainment area with music hall and stage, dance floor for live music concerts, cinema and
theater, discotheque, concerts with a capacity of holding over 1000 people at a time. Apart from the Zanzibar Film Festival and the Sauti ya
Busara Festival each lasting a week or so once a year, no one is planning a large enough venue for Jazz Festivals or a Reggae Sunsplash type of
event, you could even have a Woodstock or a Stonehenge thing on the 20 acres we have, we can package our travel services to fans who want to
attend concerts of their favorite artist on the island.

Have already had approx. 5000 people over last EID in November over 5 days we had 2 local discotheques competing, hundreds more people
over Xmas and New Year 2011 with local discos playing and local traditional Ngoma competition-festivals taking place from 19
th
to 22nd January
2012, all very underground stuff, people coming by bike from as far as town, an acrobatic group uses the Taarab Square for practice currently and
Africa Day is planned for late May 2012 in the venue for an odd 5 days inviting artists and participants from the Cape to Cairo to take part, will be
a yearly event.

A large range of entertainment is planned, a program will be available at the business center.


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Operational within 6 months.

4 Bars with the largest selection of non alcoholic and alcoholic drink can be operational within no time, our rates will be more competitive
attracting more clients and we can even introduce a Wellness immune system booster drinks that heals 99% of know diseases to mankind, the
answer to AIDS, hepatitis A,B and C, malaria, herpes, TB, most cancer and many more of mankind's worse diseases has been found.

Many diseases are now easily controlled. More that 75,000 disease victims have been included in the field tests in Africa.
Dozens of other diseases were successfully treated and can be controlled with this new mineral supplement. It also works with colds, flu,
pneumonia, sore throats, warts, mouth sores, and even abscessed teeth (it's the only thing that controls and cures abscessed teeth).
Source: http://miraclemineral.org/

We shall also be teaching the use of medical natural supplements such as Habat Soda or the Blackseed also known as Kalonji Oil, that the
Prophet Mohd said cures all diseases apart from death itself, including the Miracle Tree known as Moringa and much more, on how to use
asparagus or bentonite clay for health. Our Spa and Wellness programs shall be natural and focusing on the Immune System nutrition is the key..
A long bar is in the Taarab Square, raised overlooking the stage and dance floor, open 24 HRS, a second round bar in the Kipepeo Restaurant,
opens from 1100HRS to 1300HRS and a third bar is raised overlooking the swimming pool opens from 1000HRS to 2300HRS and finally the Club
Genesis2Zanzibar Island Bar not to forget fruit and juicing stations..
Sport tuition- nothing is been offered on the island in the form of sports tuition apart from water sports, fitness center and yoga. Karate can be
immediately introduced with a local teacher available.

Bicycle Tours will be introduced to the island.

Golf Range We shall be the first with such a facility and the golf range shall be an incredible experience due to the landscape and vegetation
and can be operational within 6 months and a golf pro is already available on the island to oversee the implementation and operations of the golf
range and double up as a sport instructor.

Shopping / 50 Shops-Offices-Stalls for Rent There is a wide selection of shopping available in the Stone Town ranging from clothing to spices
and unique souvenir. The resorts 50 shops shall be complimented by handcrafts and art stalls- a house of art selling superior quality merchandize
as most of the town only imports inferior products from China and the Far East, we shall be offering European standard goods of high quality and
our arcage will offer a selection of both local and personal items and can be operational within 6 months.

Arts and Crafts Zouk- Carvers and handicrafts will be produced on site by locals from Zanzibari materials. Operational with 6 months.

Spa/Massage Parlour Offering a full range of services. Shall be using traditional and international recipes. Operational within 6 months.


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Car Hire There is no highly organized car hire firm on the island, this is offered through small local businessman and we can start offering these
services immediately. The reception and our in house bookings and reservations center will recommend a car hire company.

Conference Center with Secretarial Services- We foresee attracting a lot of local and international companies choosing our venue to mix
business and pleasure. Indoor and outdoor conferences venues can be offered. A fully equipped Business Center is located of the receptions
lobby, including internet stations. Bookings and reservations shall be made from our business center, reception and info/tours desk for airlines and
travel plans including events.

In house Travel arrangements Bookings/Reservations for third party travel and event services and can be operational immediately.

Airport / Travel Plans- Taxis and airport transfers can be arranged through our guests relations department.

Embassies / High Commissions / Consulates- Information for all diplomatic representatives in Tanzania may be obtained at the business center
and reception.

Swimming Pool- 3 interlocked water holes, one for adults, and another for children and a third as a fish pond with a bridge over it set in lush
gardens including a river around the Club Genesis2Zanzibar Island for childrens water use. Operational within one year.

Squash Hardly no other facility on the island offers squash, there is only one squash court on the island at the Zanzibar Revolutionary
Governments House of Parliament which is not open to the public and a second at the Sea Cliff Zanzibar Hotel 5 star. Our resident guest can use
our squash court without additional charges. We shall hold back and only complete the squash court towards the end of the second year.

Tennis - . 2 floodlit tennis courts. A resident can use the tennis courts without additional charges.
We shall hold back and only complete this facility towards the end of the second year.

Fitness center - . Located at the far end of the entertainment area is a fully equipped Gym, split for ladies and gents in separate rooms. A resident
can use the gym without additional charges. We shall hold back and only complete this facility towards the end of the second year.

Volley Ball, Badminton and Basket Ball- We shall be offering a large variety of quality sport facilities within the complex attracting different sport
organizations to chose our venue for competitions and preparations of the members.

Table-Sport Darts, Snooker/Billiards Tables, Table Football, Ice Hockey.

Board Games- The resort will have a selection of board games including jenga, monopoly etc. Can be operational within 6 months of receiving
financing.

All sports and recreation facility are available to in-house guests free of charge, however a deposit will be billed to your account against hiring of
equipment which will be credited on return of the goods.


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Adventure Playgrounds- Childrens Club will be located next to the swimming pools and squash court along the adventure playgrounds. There
will a number of supervised activities available for children including Sony play stations and arts and crafts. Meals can be served at the childrens
club and the suggested age range is children of 3-10.

Snorkeling / Diving- We do not have a dive center at the resort but we have a relationship with very well established dive companies that have
dive centers all over the island. Diving can be arranged at any of the dive centers and the diving in Zanzibar is highly recommended. Snorkeling
and diving can be arranged from either the Stone Town or Matemwe. Guest relations department can assist.

Duty Manager- A Manager is on duty 24 hours. Dial reception for assistance.

Internet- Cable connection will be available in rooms and hot spot connectivity is available in the public areas of the resort.

Laundry- Same day service will be available if the clothes are give to the laundry before 0900HRS. Express service at a surcharge.

Mail/Messages- All incoming mail will be placed in rooms or held at reception.

Medical- There will be a first aid box available at reception. The resort could have a resident doctor who is available 8am to 5pm who can assist if
required. In case of an emergency the doctor can be called after hours. If case of serious injury the Hotel Manager will co ordinate an evacuation.

Security- The hotel security could be supplemented with a very well know company who specialize in the hospitality security. The staff are all
trained to assist in case of emergency and all carry radios so if you need any assistance please contact a guard or contact the resorts security by
calling the operator.

Accounts- All our accounts are payable in both local and foreign currency. Currencies accepted are T- Shillings, UK Sterling, US Dollar and
EURO. We could also accept credit cards, but there is a 5% service charge.

ATM- We foresee convincing one of the local banks to install an ATM so clients from all over the island can make withdrawals 24 Hrs a day.

Stationary- Will be available in a guests directory in rooms.

Tax- Applicable Government Tax is included in rooms and all Food and Beverages

Telephone- All guest rooms will be connected by telephone to the hotels operator

Wake Up Calls- Can be booked with hotel operator.

Tours and Excursions- The are a number of excursions available on Zanzibar and they can be booked through our in house tour operator or
even the guest relations office, below we have suggested some of our favorite trips,


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Stone Town Tour, Freddy Mercury Trip, Jozani Forest Excursion for Red Colobus Monkeys, Kizimkazi Swimming with Dolphins Excursion, Safari
Blue Experience, Princess Salme Trip, Prison Island Trip with Giant Tortoises, Sand Bank Picnic, Slave Routes of Zanzibar, Spice Tour, Sultan
Panorama, Sunset Cruise, Swahili Cultural Trips, Whale Watching Tours

(Please refer to Appendices for detailed Tour and Excursion itineraries.)

Safaris- We shall offer various itineraries from budget camping joining others starting at $175.- USD per person per day to private camping or a
lodge safari including luxury tented camp style of accommodation whilst on safari starting at $350.- USD per person upwards on the northern
safari circuit of Arusha, Tarangire, Manyara, Serengeti and Ngorongoro apart from the southern circuit, the Selous, Ruaha, Mikumi, Saadani and
Udzungwa Mountains.

A special last minute package can be developed know as Breakfast in the Bush offering clients to fly into Selous or Manyara very early in the
morning and driving into the park to find breakfast with butler set up in the middle of the national park for them. 1 night or more would be offered
starting at a modest $1000.- USD per person for 1 night / 2 days $1350.- USD per person 2 nights / 3 days, includes flights from Zanzibar or Dar
es Salaam and clients sitting on the beach can just spontaneously opt for such a safari.

(Please refer to Appendices for Sample Itinerary and highlights of a Tanzanian Safari.)

Existing Products

Currently we make 20% or more commissions on most of our competitors products that we sell as we offer all travel arrangements into Tanzania
through the internet on our websites and other distribution channels.

We should be able to offer our own products through our facility the Botanic Resort which apart from offering the traditional products and service
the others are offering, we are introducing larger safari villa like of accommodation, open air dining and entertainment as offered no where else on
the island, squash and a golf range no one else has introduced yet to date, bicycle tours and different foods and drinks which will realize a good
50% profit on sales or more.

Our products will be aiming at new niches and fast growing areas of the travel market.

Our current customers are locals and expatriates on the island including visiting tourists onto the island and our strengths being locals we can start
marketing all our services at a local level from the beach boys distributing leaflets and getting their commissions and thus getting the local
communities involved as partners and clients. .

Description of the Products/Services

We are offering shopping, entertainment and accommodation including sport, food and drink including in-house bookings for safaris and
excursions.

Our pricing strategy is going to be value for money, affordable services to the masses.

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Our service and products are unique due to the location with its good climate and lush vegetation we shall also be the only ones offer golf and
squash, including bike tours on the island, no one else will has a multi purpose built area for entertainment with stage and dance floor offering not
only live music and discotheque but cinema and theater too.

Our services do create a competitive advantage and will be used to conserve the uniqueness of the islands heritage, its history, culture and way of
life. Tourism will help to reinforce these values, and stimulate the further development of an extensive rang of cultural activities, mega events and
manifestations (e,g. festivals).

Stage of Development

The product/service is in its early lifecycle and is ready for the market with a bit of development

The only obstacle remaining is finance.

We plan to have a timeframe for introducing these products/services to the market starting within 6 months and up to 2 years in phases.

The product/service has been tested and infrastructure is already there.
2.2 Unique Features or Proprietary Aspects of Product/Service

We shall be equipping the facility with modern electronic toilets; rooms will be fitted with enough electrical plugs and fast internet connections, flat
screens and state of the art bathrooms.

The plots environment is inviting and calm, a landscape to be seen to be believed. The earth is rich and full of resources, birdlife and small wildlife
is abundant.

Our location is centrally located making it easy to reach for services from all directions, surrounded by new buildings houses government and
university facilities. More affluent families are building and moving to the area and the whole eyes of the local population is looking towards our
area with envy.

We shall have a light and sound show to equal any other venue in East and Central Africa, lasers and sky beams.

Accommodation shall be spacey and service offered with a great big smile from the heart as is customary in African culture when it comes to
hospitality.

We shall have the only golf range and a squash court on the island; we are catering for a mixed crowd of cultures and will focus on children
activities too.

We shall strongly use modern technology (IT) to leave our competition behind, but also really on local word of mouth.


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Our wildlife variety and numbers are very high we also have trees and fruits traditionally of the island that cannot be found anywhere else on the
island now.

Our pool of labour shall be sourced from neighboring villages at all times when possible, Tunguu has a very cosmopolitan population and is
growing fast.


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2.3 Research and Development

2.4 Production

Product

Some of our product(s) are manufactured in-house or assembled in-house from various vendors, this is mainly food and drinks groceries being the
main raw materials available locally at markets throughout the island.

The above items are readily available.

We do have multiple supply sources.

Service

Our service-oriented business is provided by internal staff.
2.5 New and Follow-on Products/Services

Apart for the planned room expansion from the current proposed 20 rooms to 44 rooms, who knows perhaps in the future we can lease a part of
our large land out to a casino operator if the law allows it.

We could also do a feasibility study to see if we can still acquire enough land around us to get a decent golf course up and running.

Another area of interest would be to expand into a full time tour operator, we already have a sister company registered on the mainland known as
KIANGO ADVENTURE SAFARIS CO. LTD which is already busy acquiring potential sites north of Bagamoyo in Kitame on the beach to develop
a camping and water sport fishing center (this is directly across from Zanzibar and marine transport could be used to transport adventure tourist
from our beach plot to our Zanzibar Resort and vise-versa, a motorized dhow to start off with is all you need with diving and sand bank visits en
route, the Pirate Captain Kidd is supposed to have hidden some treasures out here), Saadani, Mikumi, and Mkomazi National Reserves are very
close by including River Ruvu and Pangani in Tanga region and also possibly acquire land aroung Mtu Wa Mbu, between Arusha and Karatu,
close to all the major wildlife parks of Tarangire, Manyara, Ngorongoro, Serengeti or perhaps a camp just outside the Selous National Reserve.

I call the Ngorongoro the ZOO, the northern circuit is quite over crowded these days especially over the high season when you also have a traffic
queue or jam of cars in the mornings all descending the crater from the large lodges, the real art of safari is been lost in the north.
Future Products

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Aviation apart from flying safari, imaging competing against the big boys in the charter business, would suggest setting up in the future a flight
from Berlin, via Frankfurt and Munich in Germany once a week flying directly to Tanzania then to Zanzibar via Kilimanjaro and Dar es Salaam,
$700.- USD a seat go and return, should have the flight fully booked every week with clients and cargo. Landing rights in Tanzania would not be a
problem with our connections.

Would target western and southern highland attractions and national parks, unique safaris to destinations in Tanzania that no one is really
concentrating on using the Central Railway Line that has a lot of German East Africa history alone its route to western Tanzania in Kigoma, MV
Liemba a colonial passenger ship still operates the waters of Lake Tanganyika, and along the itinerary clients could visit lesser known parks such
as Katavi (only receives 200 visitors per year) let alone the other unsung national parks and reserves such as:

Rungwa, Mahale Mountains, Gombe Stream and Ruringi National Parks, Ungalla River, Kigosi, Moyowosi Game Reserves and Rubondo Island in
Lake Victoria.

A ROAD TRIP itinerary could be developed starting from Dar es Salaam to Southern Coastal Towns of history and attractions such as waterfalls
and trekking, to Kilwa, Lindi and Mtwara regions not so well offered on the markets.

Tanzania must diversify its tourism promotion

The Tanzanian Ministry of Natural Resources and Tourism has given a heads up to efforts preserving and promoting the Amboni caves, located
near Tanga along the Indian Ocean shores.

The extensive caves, first protected in the twenties of the last century by the then colonial government, have a recorded history back into at least
the 16th century of human habitation as a place of worship and a place of hiding during the struggle for independence. In the early 1960s, soon
after independence, the caves were officially handed to a government department responsible for monuments and antiquities but were never really
promoted to tourists visiting this part of the Tanzanian coastline.

A tourist board source, preferring anonymity, also agreed that Tanzania needs to do more to promote the lesser-known attractions more
aggressively, showcasing the entire country just as much as they are presently promoting Mt. Kilimanjaro and the northern safari circuit of
Tarangire, Lake Manyara, Ngorongoro, and the Serengeti.

"I think our best-known parks really need very little exposure now, because they are so well known, but what we need is to promote other national
parks, game reserves, museums, and national monuments where visitors can see artifacts related to our different cultural heritages, rock
paintings, to explore caves and see rare primates for instance at Gombe Stream. Mikumi and the Selous still have a lot of space for tented camps
and lodges and can receive a lot more visitors, whereas the better-known parks are now reaching [their] saturation point. So in [the] future, we
shall promote those much better to tell the market that there is a lot more to see than [the] Serengeti or Ngorongoro and have visitors come back
time and again exploring a different part of our country."

Source: By Wolfgang H. Thome, eTN | Sep 29, 2010 http://www.eturbonews.com/18808/tanzania-must-diversify-its-tourism-promotion
Market Comparison


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Currently we do not have any direct principal competitors.

The only place that has music 7 days a week is the old Bwawani Hotel on the edge of the Stone Town, with a very low market clientele and it is a
dying case at the moment.

Our product/service is superior and different as we are on 20 acres of unspoilt land with lush vegetation and climate, on a good tarmac road 20
minutes out of the Stone Town with 3 phase electricity connection and fresh water from 3 operational hand dug wells, and we can offer reasonable
services and products to our customers as we have lower operational costs and are unique in the matter that we are offering new concepts onto
the island such as events and entertainment including a golf range and squash court that no one else is offering, apart from alternative medicine
and small wildlife on our grounds.

We shall not just be marketing our facility and products/services international but starting very locally before going internationally.

We are sitting on the high ground to put it short and we intend to put a modern entertainment, cultural and sport facility for leisure and business
minded clientele.

Domestic tourism a fine idea, but

Tanzania Tourist Board has scooped a number of international awards in recognition of its endeavors in marketing Destination Tanzania. These
include the 2004 World Grand Prix in Vienna, the 2004 Golden Pine Prix in Serbia and the 2007 Golden Europe Award for Quality and
Commercial Prestige in Berlin.

To reach their vision of 2025 with tourism becoming the leading contributing sector to Tanzanias GDP, it really translate into action its mission of
significantly supporting the countries social and economic development by promoting sustainable tourism domestically and internationally through
innovative and dynamic awareness creation

It is concurred with all those who sincerely believe that it is wrong, unfair and unacceptable to engage in anything that effectively budgets ordinary
Tanzanians out of the social, economic and other benefits of the countries tourism industry.

Domestic tourism will only pick up if our tourist attractions genuinely open their doors to the citizenry- and not just VIPs,

Source: The Guardian, Friday 7
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January 2011


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3. The Market

The vision of the Government of Zanzibar regarding tourism is To become one of the top tourism destinations of the Indian Ocean, offering an
up market, high quality product across the board within the coming 10 years

The mission of Zanzibar regarding tourism development is To be the most exotic, diverse island destination in the Indian Ocean Region Exotic
as it is wrapped in a mysterious Arab/African ambience and flavored with palm fringed, tropical beaches. Diverse in terms of products, activities
and attractions, there by combining various types of tourism, e.g.: beach, nature/eco, culture & tradition, history & archaeology, water sports,
honeymoon, performing arts, conference, incentive, culinary (spices), medical (herbs).

Buyer profile: I believe that I shall be able to sell tours to a wide range of clientele from the younger generation to the older adventuring families
who cannot afford the expensive tours being offered through large competitors such as Tui, Neckermann, Marco Polo, Thomas Cook, AtlasReise,
Travel Overland, Kayak, Expedia and the rest of the competition who seem to be very set in who they are trying to attract.

Domestic Tourism- International tourism can be substituted by domestic tourism, however, due to internal factor such as lack of tourism
awareness, low income only to mention a few; domestic tourism still has a little contribution to Zanzibar revenues. The objective is to encourage
domestic tourism and maximize its significance through:

Putting consideration of the significance of domestic tourism, in particular, as a substitute for international tourism during off seasons
and/or crisis periods.
Preparing tourism education and awareness programs, coordination and cooperation with means of media in Zanzibar.
Conducting awareness campaigns in Schools and other educational institutions, in co-operation with the Ministry of Education.
Promoting the tourist movement from Tanzania Mainland and the regional integration, especially during off-season periods.

Reducing Seasonality- It is common for a tourist destination to experience seasonal differences in tourist arrivals. This situation leads to under use
of tourist facilities and services during certain periods of the year, and often-excessive demand at others times. The objective is to address
Reducing Tourism Seasonality as a serious issue affecting tourism industry in Zanzibar through the following strategies;-

Relining on traditional marketing tools, such as familiarization trips, assistance to travel writers and journalists, and participation in trade
fairs, as well as advance marketing tools, such as websites, internet and e-mailing, are considered critical activities to be explored
systematically.

Selecting or developing types of tourist attractions that will attract visitors at different times of the year, and especially during the typical
low season.

Developing some low-season activities such as festivals and special events, conference and special types of recreation facilities and
activities.

Using marketing and pricing techniques to attract tourists during low season.


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Targeting special market segments as older tourists who are free to travel anytime, and prefer the less congested destination
environments that are available during low season.

Encouraging domestic tourism that uses international facilities during low season.

Source: http://www.zanzibartourism.net/docs/policystatement.pdf

Botanic Country Resort Yearly Events, Sports, Shows and Exhibitions Dates we intend to develop

Mid November 2012- Opening Day/Anniversary Day
5th Nov Guy Fawkes Day
Late Nov Reggae Festival- might correspond this yearly event to opening days.
24th Dec Xmas Eve
25th Dec Xmas Day
26th Dec Boxing Day
31st Dec New Years Day
01st Jan New Years Day
12th Jan Mapindizu Day- Traditional Ngomas Competition
05th Feb Ccm Day
14th Feb Saint Valentines Day
March St. Patricks Day
April Good Friday, Easter Saturday, Sunday, Monday
26th April Muungano Day/Union Day
1st May Labor/Workers Day
25th May Africa Day- A weeks long festival
21
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June Longest Day in the year.
07
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July Saba Saba Day
Idd El Fitr
19
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August approx Idd el Haj
15
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Sept Nyerere Day
Sept-October Oktoberfest
Early Oct Jazz Festival
Pancake Day
Fathers Day
Mothers Day
Bush Baby Full moon Parties 12 Times a Year
To be developed Wine Festival


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Monthly Events - We will be hosting monthly specialty and themed events, initially emphasizing African history and Culture. We also will be
hosting monthly events such as Valentines Day Lovers Getaways with Champagne, Chocolate samplers, Fresh Fruit and Cheese and masseuse
services. We will have different events each month with different specials/dinners.
Yearly Events- Apart from having nationality days of countries like Kenya where you can do a Kenya Day Festival, you can also have festivals
based on famous entertainers, Bob Marley Day, Michael Jackson Day and so on throughout the year, many new themes can surely be thought up
and packaged for local and international marketing, Caribbean Night, FaceBook Party, Brazilian Samba Night and so on.

3.1 Industry Analysis

Top 10 Luxury Travel Trends for 2011 - September 30, 2010

Thomas Stanley, COO of Cox & Kings, the longest-established travel company in the world with more than 250 years of experience names the
hottest destinations, experiences and modes of travel for the coming year.

1. Multi-Destination Vacations Because travelers want to get the most out of their vacations, there has been an uptick in multi-destination
vacations. According to Stanley, "We are starting to see an increased interest in combined itineraries such as India and Bhutan or Peru and
Argentina. With new air routes coming on board such as LAN's route between Lima and Iguassu, visiting two countries in one trip is more
convenient than ever, affording travelers the opportunity to experience exactly what they want from a combination of countries."

2. The Revival of Group Tours With the economic recovery still in progress, many travelers are looking for the same exotic travel experiences
at a lower price point. Group tours provide a more value-driven travel option without compromising the once-in-a-lifetime travel experience.
Recognizing there are many who want a highly experiential vacation at a great value, Cox & Kings provides options such as the new Discovery
Group Journeys which engage a small group of like-minded travelers across the globe, averaging from 12-18 individuals from North America, the
United Kingdom and Australia.

3. Contemporary Cultural Travel A history-laden location is no longer enough to satisfy today's intrepid travelers. 2011 will see a desire for
more meaningful interactions with artists, trendsetters and experts local contemporary culture. "China is a destination that currently boasts a
cutting-edge modern art scene, which has attracted interest from international visitors as well as art collectors," said Stanley. "Travelers want to
see beyond the historic art these areas are known for and get a glimpse into what is happening now." Cox & Kings offers "Cambodia & China:
Ancient Traditions Revealed in Contemporary Art" which explores the contemporary art scenes in each of these countries.

4. The Resurgence of Travel Experts While once a great resource for travel information, the Internet has become so oversaturated with non-
relevant information that sorting through the mass of travel sites, reader reviews and booking engines has made booking exceptional travel
experiences a dicey process at best. This paired with more specialized and specific requests by the traveler has caused a resurgence in working
with tour operators and travel agents. People want to work with a travel professional who has relationships with the hotels, tour guides and
intimate knowledge of the best a destination has to offer, said Stanley. "With more than 250 years in the industry, Cox & Kings has developed
invaluable and long lasting relationships worldwide."


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5. Not Just Seeing But Learning The popularity of educational travel will continue to thrive in 2011. Travelers are interested in learning and
doing, not just seeing. "Demand has increased for specialized learning experiences everything from sushi-making in Japan to photography
excursions in Argentina. People want to come away with a strong emotional connection with a destination and bring back more than just
memories, but a skill they can actually use from a vacation. Cox & Kings offers a wide variety of learning itineraries from becoming a textile expert
in India with "Textiles of India" to learning the art of a sommelier in Lebanon with "Lebanon & Syria: Empires Past".

6. Ride the Rails A number of new luxury trains have launched in the past year, causing a renewed interest in rail travel that will increase
throughout 2011. Rail travel is an easy and comfortable way to maximize travel time, allowing travelers to see a large number of sites without
having to pack up and fly or drive between these locations. The Maharajas' Express, Indias first state of the art cross-country train, offers guests
luxury and comfort and amazing off-train excursions. The Classical India journey traverses Delhi, Gwalior, Khajuraho, Varanasi, and Lucknow,
with return to Delhi. The Princely and Royal India journeys take guests from Mumbai to Delhi (or Delhi to Mumbai) and travels through the heart of
regal India, including stop in Vadodara, Udaipur, Jodhpur, Bikaner, Jaipur, Ranthambore and Agra.

7. Experiential Family Travel The face of the family vacation is changing and they are extending far beyond a week-long island refuge. The
demand for hands-on experiences that focus on learning and doing as opposed to just seeing will increase in 2011. According to Stanley, "There
is a desire from parents to expose their children to the cultures and lifestyles of the regions that they are visiting. Travel is one of the best
educational tools for children." For example, Cox & Kings can create, as part of a family journey to China, an opportunity where teens can help
take care of pandas under the supervision of zoo keepers.

8. "Bucket-List" Experiences 2011 will see in increase in extremely unique, "bucket-list" experiences in far-flung destinations. Travelers are
looking to tick those must-see travel experiences off their lists and are now seeking the experiences that will allow them to return home with
bragging rights among their friends. These thrill-seeking experiences include: the "Nepal: Himalayan Helicopter Safari" journey by Cox & Kings,
which offers the opportunity to view eight of the highest mountain peaks in the world, including Mount Everest, at 29,035 feet; or experiencing the
great African migration in Tanzania during the annual zebra and wildebeest migration in the Serengeti with the "Splendors of Tanzania" journey.
"Despite seven previous trips to Peru, last week I was finally able to check off one of my bucket list items and fly over the Nasca lines," says
Stanley.

9. One of a Kind, Specialty Travel Experiences Niche travel will continue to grow throughout 2011. From culinary tours to yoga retreats,
travelers are looking for specialized itineraries catering to very specific interests. Cox & Kings has recognized this upcoming trend and offers
experiences such as the Antiquarian Book Fair: India itinerary which takes bibliophiles to the infamous book fairs held in Calcutta and Delhi and
offers a glimpse into the multilingual publishing industry and what's new and old in book publishing from around the world.
10. Top Destination Picks for 2011 "Travelers are always looking for the next hot spot, and these are some of the countries where theres been
pent up demand. Based on what Cox & Kings clients are asking for, Stanley predicts Libya, Zimbabwe, Lebanon, Colombia and Jordan as the hot
destinations for 2011.

Source: http://www.luxurytravelmagazine.com/news-articles/top-10-luxury-travel-trends-for-2011-14947.php

Our concept fits in very well with future trends being predicted above.


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World travel trends spell opportunity for 2010 By: Dr Nikolaus Eberl

The World Travel Trends Report 2009, published last week at the annual World Travel Market exhibition in London by market research group
Euromonitor, spells out intriguing lessons from the 2008/9 slump in global tourism and the opportunities for the upcoming travel season.

"2009 was a challenging year," said Caroline Bremner, global travel manager at Euromonitor, "We predict that 2010 will be much better. In
particular, the following trends spell opportunity for global destinations going into the World Cup Year.

Over-60 market ignores economic crisis for travel

The report revealed that the Grey Market (travelers over 60 years) refuse to let the recession kill their holidays. The Grey Market makes up nearly
two thirds of the 54% of people who have declared their holidays sacrosanct and decided to ignore completely the economic downturn. "Eighty
percent of the public sampled admit issues such as poor currency exchange rates and flight taxes won't deter them. And of those people, the over-
60s is the biggest grouping (84%)," said Fiona Jeffery, chair of the World Travel Market.

Obama factor boosts tourism to Africa
As for Africa, the Global Trends Report 2009 reveals that tourism to the continent is experiencing a revival largely thanks to US President Barack
Obama. The election of a President with an African heritage has encouraged many Afro-Americans to not only trace their roots but also visit the
lands of their ancestors.

The US represents Africa's largest source market with 41 million African-Americans in residence. Of the total, 31% make up Generation Y (people
born in the 80s and early 90s) presenting a strong opportunity for tourism to the region to continue to grow in the long-term.
Furthermore, DNA testing to trace ancestral origin has increased in popularity and is boosting cultural and heritage tourism to the region. There
are now more than 2000 genealogy companies in the US and 35 000 African Americans have done DNA tests since 2002.

Golf tourism in Asia on the rise
The rising standard of living across many Asian countries combined with the desire of emerging destinations such as Laos, Cambodia and
Vietnam, to develop tourism infrastructure through high-value, high-spending visitors is fuelling the golf tourism trend. Current leaders Thailand
enjoyed revenue from golf tourism totaling US$800 million, growing at 10% per year, putting the niche sector in a much better position than the
overall tourism sector.

Many tour operators have devised value-add packages offering unlimited rounds at a discounted price to attract golfers from Japan, South Korea
and Singapore. The Southeast Asian Golf Trail combines top-class courses across Thailand, Vietnam and Cambodia for a value-for-money price.

Source: BizCommunity.com http://www.bizcommunity.com/Article/196/147/42144.html


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General Information

Size, Growth Rate, Trends, Drivers of the Industry

ITB World Travel Trends Report predicts changes in travel and booking behavior

Facebook instead of postcards

Monday 3 January 2011

ITB World Travel Trends Report predicts that social networks will have a massive influence on travel and booking behavior Mobile services
continue to expand New display and payment models to boost sales.

Social networks are not only influencing the way that people obtain information and make their bookings in advance of a journey, but also provide
an important channel for communications during the trip. Facebook and other social media are used during their trips by 37 per cent of
international travelers in order to keep their friends and those at home informed, or to post photos online before their return. In order not to restrict
this development it is important that the costs of using mobile devices abroad are easily understood, and solutions must also be found to the
problem of roaming tariffs.

This was the conclusion drawn by the ITB World Travel Trends Report, based on extracts from the European Travel Monitor and estimates by
more than 50 tourism experts and researchers from around the world. IPK International was commissioned by Messe Berlin to compile this report.
Over the next few years social networks will become an everyday form of communication and will be widely accepted for the purposes of making
reservations. Already 52 per cent of the 152 million adult vacationers in the USA are using social networks in order to discuss their next intended
destination with friends, or to obtain direct information from travel companies. However, two factors will apply if tourism companies are to continue
to develop their use of social networks: credibility and reliability. At the present time traditional channels such as friends and acquaintances, travel
catalogues and other media are still more trusted than social media.

Mobile devices such as the iPhone are revolutionizing the travel market and are creating new openings for our industry. Now we must endeavor
to make best use of this technology and to continue to develop it, because improved information and booking facilities definitely help to increase
sales, states Dr. Martin Buck, Director of the Competence Centre Travel and Logistics of Messe Berlin.

For example, in Japan Smartphones are already being used to make reservations for 20 per cent of domestic flights.

The market will continue to expand as a result of the introduction of new mobile services such as Augmented Reality and various other
applications. In order to be able to address the widest possible target groups companies should offer applications for all current Smartphone
models and should also encourage the development of mobile websites, according to the tourism experts attending the World Travel Monitor
Forum. Real time information is another area with scope for expansion, for example, offering the fastest means of alerting travelers to altered flight
times.

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Another vital factor for the continued growth of the E-travel sector is the development of innovative display systems and payment methods. Apple
is currently testing mobile advertising in the form of iAds, combining the emotional impact of television with the interactive properties of the
internet. Mobile payment methods are another current trend, enabling purchases to be made using ones own iPhone. However, high roaming
charges are a continued obstacle to the use of Smartphones abroad. Although the European Union issued a warning signal with regard to
charges in excess of 50 Euros this year, so far such regulations have not been applied in countries such as the USA. The lack of simple and fair
regulation of the worldwide use of Smartphones imposes massive obstacles to the use of online services while travelling, says Dr. Martin Buck.

This is one area where viable solutions must be applied as soon as possible.

The ITB World Travel Trends Report 2010/2011 is available at www.itb-berlin.com, or please see appendix for a copy. It has been prepared
using estimates by 50 travel trade professionals from 30 countries, an analysis of trends carried out by IPK on the main markets from which
tourists originate, and basic data provided by the World Travel Monitor, which is regarded as the largest, ongoing study of global travel behavior
in some 60 countries. These findings reveal tendencies which became apparent during the first eight months of 2010. The end-of-year results,
including current prospects for 2011, will be presented on 9 March at the ITB Future Day during the Convention, in the session entitled ITB World
Travel Trends Report: ITB World Travel Trends Report: Forecasting Global and European Tourism by Rolf Freitag, CEO IPK International.

TripAdvisor has unveiled its 2011 Travel Trends Forecast.

The annual TripAdvisor travel trends report is based on a survey of more than 3,000 U.S. travelers.
Ninety percent of those surveyed plan to take two or more leisure trips in 2011.
U.S. travelers named an increase in online travel deals as the best travel development of 2010 (39 percent).
While rising airfares (40 percent) and bedbugs (20 percent) are the top two travel concerns for 2011.

Says Karen Drake, spokesperson, TripAdvisor:

Many Americans are already eagerly anticipating some terrific travel adventures for 2011. Online travel deals, named as the greatest travel
development of 2010, will continue to offer aspiring vacationers fantastic opportunities next year whether theyre planning a nearby weekend
getaway, or the dream trip of a lifetime.

Here is what we think are other interesting travel trends:

Travelers Globetrotting in 2011:
69 percent of travelers plan to take international trips next year;


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Popular Pursuits and Eco-Traveling in 2011:

Top Five Vacation Activities:

1. Visiting an historic site
2. Visiting a museum
3. Visiting a national park
4. Attending a festival
5. Hiking
6.
47 percent of respondents will consider eco-friendly factors such as their carbon footprint or green hotel policies.

20 percent expect to be more environmentally conscious in their travel decision and choices.

Courtesy: http://www.travelinggreener.com/news/2011-travel-trends

Sensitivity to Economic Cycles & Seasonality

We shall increase marketing and giving special offers out during low seasons to residents and special groups.

Seasonal variations in business will affect our cash flow and have been well taken into account, the low season usually starts from after Easter as
we go into the long rains to mid June when high season starts all the way to the end of September when low season takes over again to mid
December when we go into peak season to about the 10
th
of January when it returns to high season back to Easter.

Legal, Political and Economical Factors

Zanzibar, Tanzania is politically stable; it is one of the few countries in Africa, which have not had a civil war

Presence of government agencies and regulating bodies shall not be an obstacle as we are all very familiar with all the players, Zanzibar is very
small and everybody knows each other making our relationships with all parties concern very relaxed and formal.

Corporate tax shall only be paid after 4 years, as 2 years are granted for construction and 2 to 3 more years are exempted from corporate tax

Government spending is increasing to support the tourist market with construction of good roads and facilities as they recognize the importance
the tourist industry plays in the economy. For instance the last President Karume saw fit to cancel his presidential executive jet and ordered that
the savings should be spent on improving roads on the island.


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Sociocultural Factors

Technological Factors

New travel industry solutions the latest back-, mid- and front-office applications, booking tools, and reservation systems for travel agencies,
organizers and enterprises shall be integrated with our websites being updated and brought up to Web 2.0 standards if not Web 3.0 or higher.

Finance Norms & Patterns

Terms with vendors, customers, the capital market will be to our terms and conditions, cash sales no credit and as low as possible interest rates.

Standard markup of products in minimum 20% and a lot higher on our own products and services as there is no middleman from start to finish.

Inventory par levels will always be returned to their full states at the end of the week.

Profit expectations are a lot higher then forecast as we have been very modest in prices and number of sale units.
3.2 Market Analysis

Travel and Tourism in 2011

By Geoffrey Lipman and Shaun Vorster | Jan 02, 2011
Despite a return to growth in 2010 there is a solid case for caution in looking at global travel expectations in the coming year. This is a time for
measured analysis and focused response. The 2008/9 global financial crisis fundamentally changed the economic and consumer landscape.. The
post-recession market and consumer are different and smart destinations will have to pro-actively find new offerings for new consumers in new
markets, and adopt new ways of communicating with those value-conscious consumers. In doing so, they should take advantage of unique
national selling points and a limited number of international collaborative opportunities.
The global economy, which is the main driver of travel and tourism, is slowly regaining momentum. The recovery is fragile and uneven, and
markets are shifting.. At 6% economic growth, China, India and other emerging markets are expected to recover faster than traditional source
markets. The European Unions working population is declining, as is Japans. Yet, despite the strong growth prospects, emerging economies,
particularly in Asia, face new inflation tendencies as well as potentially disruptive currency and trade pressures. Industrialized countries in North
America and Europe, which account for more than 75% of global GDP, are expected to grow their economies at some 3%. And here
unemployment has reached unacceptably high levels; responses to budget austerity and country bail outs in Europe threaten dramatic disruption
in economic and particularly social stability; political gridlock in the US makes decisive national intervention more difficult, and hence significant
G20 economic adjustment is becoming more complex.


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In addition, geopolitical tensions in key hotspots are volatile and natural disasters and/or extreme weather events remain a constant uncertainty,
with only negative impact potential (the 2010 Ash Cloud and the disruption caused by snow and ice storms to air travel on both sides of the
Atlantic in December 2010 representing prime examples).These underlying conditions will affect travel and tourism in ways that increase the
challenges but also open new opportunities. Industry prospects for 2011 should be viewed in this broad context.
On the negative side of the balance sheet, it is important to put 2010s growth into a valid context of the previous steep declines. We are now back
to 2008 performance levels. Moreover, the full return of business and consumer confidence will be slower than expected. Most consumers are still
rattled after the financial crisis and household budgets have not yet recovered to the extent required. In hard times companies will continue to look
to tight travel controls and with high unemployment it is easy to rationalize putting off a vacation, staying closer to home or trading down in price or
length of stay. And revenue generation will remain tough. This was already the case in 2010 where yields grew everywhere at a slower pace than
arrivals. There is no basis for expecting this to change in 2011.
Airlift is an important enabler of tourism. Despite travel demand being pretty robust, consumer confidence in the aviation sector has not recovered
in the same way as business confidence. Analysts expect headwinds in leisure travel to continue for up to another three years, especially from
Europe, and a mid-cycle market slowdown in passenger numbers has also been forecast for 2011. Global exchange rate volatility, oil prices and
fuel hedging costs affect airline profits and tourist volumes alike. Although jet fuel prices are still significantly below the 2008 peak, they are rising
steadily. There are also significant cost increases looming on the horizon unilateral travel taxes, which have begun to spiral in Europe, are likely
to become a bigger issue as governments scramble for fast revenue to plug budget gaps and as carbon pricing spreads. In addition, there are
strong pressures on fuel prices and security costs which are increasingly important elements for the entire travel and tourism value chain, not just
the pivotally important transport sector. Global security concerns continue to trigger cumbersome visa requirements and intrusive airport security
systems, which in turn affect the quality of the travelers experience.
The positive side of the balance sheet is the changing recognition of the role of Travel and Tourism in key strategic economic areas. It is
increasingly seen as part of the solution and a key sector to help the world avoid a jobless recovery. This is recognized, politically, by the T20
Tourism Ministers platform inaugurated by South African Tourism Minister Marthinus van Schalkwyk in 2010, the World Economic Forum,
UNWTO, WTTC, OECD, UNEP and various regional bodies and national governments.
The value of investment in travel infrastructure - the modernized airports, high speed trains and superhighways that were at the heart of many
stimulus packages - have already created new jobs in construction, design and engineering and will enhance the long term growth and quality of
our products. Similarly the intensifying competition to host mega-events is another sign of the same value add, as well as the massive global
nation branding, infrastructure development and travel export promotion that comes with it.
The realization of the value in trade terms of the booming outbound traffic flows from emerging markets in Asia, where China is on course to
become the largest domestic, inbound and outbound travel market in the world during the next decade, as well as the strong tourism flows from
Eastern Europe and Russia, and the market of one billion consumers in Africa, is at the heart of response to globally shifting markets. This does
not render the traditional markets insignificant, and income per capita in these markets will still overshadow those in the emerging markets for
some time. However, pre-financial crisis market segmentation and the indicated product diversification need to be continually reviewed. A risk
management approach with domestic tourism as the mainstay of sustainability is required to hedge against currency volatility, external economic
shocks, disasters and terrorism. So too the increased domestic and regional travel has demonstrated how our sector primes local economic
development, supports small and medium enterprises and encourages consumer confidence, irrespective of the major long haul traffic flows.


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We have also begun to establish our place in the green growth agenda, by the growing commitment of travel and tourism companies and
communities to carbon neutral operations in line with the evolving climate change mitigation and poverty reduction imperatives. Policymakers and
financiers are increasingly understand that travel and tourism - including air transport - can deliver on any package of carbon reduction measures
that governments are able and willing to implement themselves. In far less than a decade, a low-carbon value chain for the tourism sector in all its
dimensions will be an important driver of competitiveness. Industry is already repositioning as Governments across the world start to put in place a
tighter regulatory framework and introduce economic instruments that price carbon.
There are many micro ways to strengthen the Travel & Tourism balance sheet in 2011 and beyond, including focused marketing, creative product
streams, new media and technology integration. These will mostly be played out at the national level where the fight for the new tourist flows from
emerging markets will intensify, the competition to host mega events will hot up and the focus on national and regional promotion programs will
deepen.

We are entering the age of the so-called digital natives with technology increasingly replacing the traditional travel agent as the channel between
consumers and travel offerings. In future, technology and e-marketing will increasingly drive the choice of destinations, the tailoring of holidays
rather than the packaging of holidays, and new ways of booking and paying for travel. Consumers will also expect technologies to take the hassle
out of travel, inter alia through online visa applications (e-visas), mobile maps, meta-search engines, blogs and podcasts.
Besides being more price conscious, the new consumer is also seeking more authentic product offerings. Significance in travel experiences are
being redefined by consumers. The demand for mass-based leisure tourism is being replaced by a desire to connect emotionally with destinations,
local people and local cultures. The customization of authentic cultural and nature-based experiences becomes critically important. New
technology could help to facilitate this shift from generic product offerings to platforms where tourists tailor-make their desired experiences.
There are two macro areas where we need to develop collective and coherent positions as a sector in the short term.
Firstly, we must respond to the potential plethora of discriminatory travel taxes, where the UK APD has set a dangerous precedent that was touted
as a fair green tax but is in fact an unfair, anti-trade tax on exports and imports. We should make this a collective public policy issue, establish a
game plan for non-discriminatory fair travel taxes and demand that all monies collected by any government for so called green taxes be
earmarked and used for those purposes with full involvement of the sectors stakeholders. Clearly, these new trade barriers hit developing
countries the hardest. Ironically, developing countries are taxed on precisely the service exports that give them a comparative advantage. These
taxes also render the tourism sectors in the countries imposing them less competitive and impact on bottom lines in the airline industry.
Of particular concern is the absence of a multilaterally agreed regime for managing international aviation emissions. Aviation emissions were
excluded from the Kyoto Protocol and to date there has been very little progress towards agreeing a global regime for aviation emissions in a post-
2012 climate regime under ICAO or the UNFCCC. Rather, the landscape is now characterized by a patchwork of unilateral and minilateral policies
and measures aimed at pricing aviation emissions. One cannot escape the impression that many of these national/regional initiatives are designed
in a way that prioritizes fiscal objectives over environmental effectiveness while presenting the opposite position.
The UN Secretary-Generals High-level Advisory Group on Climate Change Finances (AGF) report on sources of climate funding published in
November 2010 has provided some new momentum to efforts to frame a global solution. The report covers potential sources of funding to meet


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the political commitment in Copenhagen to raise US$100 billion annually by 2020 for financing climate change mitigation and adaptation. The AGF
estimates that some US$10 billion annually by 2020 could be raised from pricing emissions of international transportation, i.e. aviation and
shipping, on the understanding that there will be no net incidence on developing countries and between 25 and 50 per cent of total revenues
will be earmarked for climate funding. Besides the broader question on the architecture of the global climate change regime after 2012, key
questions as this concept evolves include: could it become a single multilateral source of revenue raised from travel, thereby replacing the
patchwork of opportunistic taxes levied on non-voting consumers; how will it fit into a broader global climate change regime that covers all
economic sectors; how could the revenue be recycled to support green growth in travel and tourism; and what are the cost-benefit trade-offs from
a broader welfare and socio-economic development perspective? The industry must The industry must seek rational and reasonable answers
before the framework becomes embedded in policy and law.
Secondly, strategically, we should solidify our recognized role as the major job creation industry in the world, at a time when unemployment will
dominate media headlines and political decision-making. Social inclusion and decent work are key elements. And in the related area of incentives
for green growth, climate response and poverty reduction we should firmly establish our credentials as the catalytic sector for building climate
resilient tourism infrastructure, adapting to unavoidable climate change, and decarbonising our economies whilst at the same time building new
opportunities for small entrepreneurs and community development. These are areas where the potential contribution of Travel and Tourism equals
or exceeds any other area of the economy as an agent of change.
In conclusion, it is up to each destination to develop and leverage its existing platform, to reinforce its brand and competitive positioning, and to
create the best possible strategic fit between where they are going and where the future is going. In doing so, they have to put consumers first in a
sustainable way, and facilitate greater alignment across government and industry. And they have to get the message across that travel and
tourism is an important driver of inclusive/shared economic growth, rapid job creation, service exports, happiness/well-being of individuals and
communities, and social development, and, as such, that there is massive social good embedded in the sustainable development of the sector.
Source: http://www.eturbonews.com/20333/travel-and-tourism-2011


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Market Segmentation and Target Market

Demographics

- Ages: All Ages, young and old
- Sex: males and Females
- Incomes: Medium to higher income categories

Youth Travel

Today, Youth and Student Travel plays a significant role for the worldwide tourism industry. Every year, the demand in this sector is growing
continuously and receives visibly higher attention. The Youth Travel Centre with its exhibition area and interesting events established itself
at ITB Berlin during the last 8 years.

Source: http://www1.messe-berlin.de/vip8_1/website/Internet/Internet/www.itb-berlin/englisch/About_ITB_Berlin/Market-Segments/Youth-
Travel/index.html

Geographics

Our target markets are International tourists and visitors from mainland Africa and the rest of the World. The local market on Zanzibar is also very
lucrative with private individuals, business people, government officials and delegations, not to forget the local expatriate community who would
put the facility to use for themselves and their guests.

Size: Market percentage we should gain profitably with our central location we are accessible from all corners of the Island.

Area served will include our neighborhood of Tunguu and surrounding areas, and Stone town, including the whole island, including Tanzania
mainland and neighboring countries and further a field to the international market.

Density of population in Tanzania is 40 million and growing on Zanzibar Island itself it is over a million with a good 500,000 in the Stone Town
itself the rest spread over the, suburban, rural and on neighboring islands.

Nature of the location is a new downtown, with business, shopping, residential, administration and educational facilities such as universities
and ministries.

Transportation is by local buses, daladalas, taxis, personal car to our premises.

Lifestyle

The buyer profile would be Government, Business and company managers, institutions and private individuals and groups, much like a
Facebook.com or MySpace.com Type of Profile. Expect to have a variety of guests being in the arts and alternative medicine and health business.


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- Profession: Student to white collar. We expect to cater for a mixture of clientele, young and old, yuppies and sporty types, leisure and
active people, families and business people
-
- Education: Clientele we would target include Educational Institutions, International schools, Universities and Companies and Institutions
who would be offered special group priced packages for their students, teachers and workers, scouts and sport clubs.
-
- Family Size: Singles, Couples, Families

The Botanic Country Resort can easily accommodate any demand in growth with 24 rooms already on the approved plans to be
developed in the future and much more acreage is available for new ideas and future development having over 20 acres of land.

The interest to travel to Zanzibar, Tanzania comes from all corners of the planet, America, Australia, Asia and even Africa, for example South
Africans, Kenyans, Zambians.

Psychographics

Buying Factors and Sensitivity

Our location and facility design, its all round ambiance from the main road and walking into it will be an eye opener, sanitation will be of very high
design and standards.

Online clients usually do not show much loyalty to brand or company they book through, it is usually a matter of where can I get the best deal on
offer.

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Market Size and Trends

We are competing in the Travel and Tourism Market.

World Travel & Tourism Economy GDP US$ bn
1988 1887.010
1989 1975.220
1990 2218.180
1991 2296.650
1992 2487.910
1993 2503.810
1994 2707.92
1995 2952.810
1996 3128.220
1997 3170.420
1998 3238.050
1999 3398.900
2000 3481.610
2001 3405.040
2002 3419.690
2003 3718.840
2004 4181.290
2005 4520.610
2006 4849.610
2007 5387.170
2008 5880.070
2009 5433.700
2010 5750.870

Source: World Travel and Tourism Council http://www.wttc.org/eng/Tourism_Research/Economic_Data_Search_Tool/index.php

A 9% market growth is expected for Africa


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Statistics & Trends

ITB Berlin Convention 2011

Hotels of the future: Robots at the reception and individualized rooms

Friday, December 31, 2010

The hotel room is decorated to meet guests particular tastes, the bath water is just how they like it, the minibar is stocked with their
preferred range of drinks, and their favorite music is playing in the background. This, or something similar, could soon become reality for
hotel guests. This was the conclusion drawn by the ITB World Travel Trends Report, based on extracts from the European Travel Monitor
and estimates by more than 50 tourism experts and researchers from around the world, including investigations carried out by the
Fraunhofer Institute for Work Management and Organization (IAO).

The Fraunhofer Institute believes that technological advances with be among the most important forces driving the hotel industry, leading to
some major changes over the next ten years. Guests will be checked in by robots, which will also provide a first class range of services for
the duration of their stay. Automated smart rooms will be fully equipped to meet the needs of guests. Guests will have their own profiles,
which they can either enter via a PIN on a smart phone or which are transmitted by means of biometric authentification. This data can then
be used to individually adapt the lighting, air conditioning and even the colour of the room. In the hotel rooms of the future the entire
infrastructure will be designed to aid relaxation: gentle curves instead of sharp edges, smart energy beds, wall displays with giant screens,
serving as an interactive interface to all the different communication channels and providing a workspace for business travelers. However,
technological innovation is not the only topic under consideration in planning the hotels of the future, and ecological aspects will play an
increasingly important role in meeting the needs of guests.

Growing environmental awareness, global trends such as demographic changes, increased mobility and multi-cultural developments will all
help to alter the profile of guests. In the future the different requirements of specific types of guests will determine what is on offer. This
presents some serious challenges to the hotel industry, but also provides an opportunity to attract new types of guests, reports Dr. Martin
Buck, Director of the Competence Centre Travel and Logistics at Messe Berlin.

In the age of Web 2.0 innovative hotel operators are already engaging in a dialogue with their customers. The experts are fore-casting that
future communities will form hotel families. Like-minded people will initially make contact interactively, compare interests and exchange
recommendations, eventually meeting in a hotel that is specially tailored to enable them to undertake joint activities. This is one example of
how social networks could lead people to form social communities. At the same time hotel operators could use the profiles of these hotel
families and the feedback that they generate to adapt their products and services to meet the needs of their clients even more effectively,
and to be able to offer them services that accurately meet these requirements.

Source: http://www.traveldailynews.com/pages/show_page/40809-Hotels-of-the-future:-Robots-at-the-reception-and-individualized-rooms-


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Market Needs

There is not one decent music venue currently operational on Zanzibar.

We have one Bwawani Hotel with disco and a roof top swimming pool with no water in it as it is in such a bad state it might collapse into the
discotheque below at any time, and over flowing toilets, the disco is a no smoking disco with petty thieves and everyone smoking around the
outside corridor.

We have 2 restaurants in the Stone Town, Livingstone and Mercurys hosting the same boring band once a week each serving over priced hot
beer with no washroom infrastructure to satisfy their clienteles, untrained staff beating up and abusing their clients.

A full moon party on Kendwa Beach once a month that is full of beach boys also with no cold beer or only 1 brand of beer remains as the night
goes on, again no washroom structures with a malfunctioning cashier system, an odd 80s party organized by local DJ now and then, perhaps a
hotels opening party here and there now and then otherwise nothing much more than a second fullmoon party on the East Coast.

The whole island is on shut down entertainment wise, no outdoor or small pubs or cafes, bars and outdoor discos or music are licensed any more
to smaller venues due to the pressure caused by fanatical Muslims, call them Al Kaida or Al Shabaab, many small local bars have been burnt
down.

We have the advantage of being fully licensed and approved all the way from the top and bottom, we are set away from the main road in an
enclosed compound of over 20 acres with full protection of the law. No one can easily open anything around us or in the surrounding area with our
entertainment niche.

By midnight the whole town is asleep from boredom, people do not know in which direction they should head in their cars due to the lack of
recreational opportunities on the island.

Our product/service will fulfill these needs, providing a safe and mature decent place for the whole family in an amazing natural environment.

Market Growth

We expect the market to grow very fast and intend to concentrate on niches for example target bicycle clubs or even Harley Davidson Clubs or
Classic Car Rallys to come and tour the island creating our own growth as the need is there, by now people are surely tired of going to Greece or
where ever they go ever year for a company meeting or holiday. New markets are emerging from all corners of the world.
The price of our product and service will increase with time as we are starting at the lower end as it is.

The market is growing very fast.

The stage of development of the market is in growth with 5% expected globally and up to 9% growth is expected for Africa.


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The Top 45 MUST Travel To List for 2012 Across the World
The New York Times just ran their top 45 pick for where to travel in 2012. Below we have taken a summary of the places so you can catch up
quickly on each of their picks including a handful of memorizing shots. Included is a link back to the original post which is well worth a read as not
only does it go into detail on every place but they have slide shows for destinations so you can also be visually enticed.
#1: Panama: Given that its been 12 years since Panama regained control of its canal, the country has had time to shape itself and its economy is
now booming. Cranes stalk the skyline of the capital, Panama City , where high-rises sprout one after the next and immigrants arrive daily from
around the world. Among those who have landed en masse in recent years are American expatriates and investors, who have banked on
Panamanian real estate by building hotels and buying retirement homes.
#2: Helsinki Finland : Copenhagens culinary awakening and Stockholms trend-setting fashion may have ignited the worlds current infatuation
with Nordic culture; now Helsinki is poised for the spotlight. The International Council of Societies of Industrial Design has designated it the World
Design Capital for 2012.
# 3 : Myanmar: Back on the tourist map after being off-limits for years, which is no surprise given its renowned cultural treasures, world-class
boutique hotels and deserted beaches .
#4. London: London is preparing for the pomp and circumstance of the Olympic Games and the Diamond Jubilee celebration of the Queens 60th
year on the throne. New stadiums, public spaces and shopping centers are emerging on the citys eastern edge; a 137-room Waldorf Astoria has
opened on a 400-acre estate near Heathrow Airport. Of course you should go to shop as well although the dollar/pound exchange rate remains in
favor of the Brits though the Euro is doing much better.
#5. Oakland, California: This one surprised me. They begin by talking about the tensions which have cooled since violence erupted at the recent
Occupy Oakland protests, but the citys revitalized night-life scene has continued to smolder. And then dive into the historic Fox Theater, which
reopened in 2009 and quickly cemented its status as one of the Bay Areas top music venues, drawing acts like Wilco and the Decemberists. The
latter is true and I like hanging out there but was just surprised it made a top 45 list given all the locals in the world one could discover.
#6. Tokyo: the thought of traveling to Tokyo will most likely make some people nervous. I was thinking of going this past year myself and decided
to put it off for a bit. Though the city is about 180 miles from the Fukushima Daiichi power plant, the site of the worst nuclear disaster since
Chernobyl and the State Department recommends travelers avoid only the area directly around the disaster site Tokyo has suffered as well,
a problem of perception as much as reality. But they argue that its a great time to visit because of the decrease in tourism and business travel .
#7. Tanzania: Between Mount Kilimanjaro, and lesser known places like Gibbs Farm , a small lodge from which guests can hike to the
Ngorongoro Crater area, a prime destination for big game viewing, the place is full of nature havens. In addition, the opening of exclusive safari
reserves like the Singita Grumeti and the upscale camps managed by Nomad Tanzania and Chem Chem are evidence that the countrys tourist
infrastructure is becoming more sophisticated, perhaps even catching up to Kenyas.
#8. Chilean Patagonia: With its mix of snowy peaks, pristine rain forest and network of virgin national parks, Chile is emerging as one of the
worlds adventure hot spots and now has a spate of rugged luxury lodges in which adventure-seekers can stay. Puma Lodge , a glass-and-wood


69
design showcase about an hour and a half south of Santiago , features heli- skiing through miles of untouched powder, and outside of Patagonias
Torres del Paine Park, the brand-new Tierra Patagonia offers activities like horseback riding over the steppes and boat outings on a glacial lake
(while also offering creature comforts like a spa and a heated indoor pool).
#9. Lhasa Tibet: In Lhasa, this is news: not only is operating an upscale hotel at nearly 12,000 feet above sea level no small feat, but real-estate
developments here are, almost by default, also culturally loaded. The majestic, 162-room St. Regis Lhasa Resort has been in full operation since
May. In 2010, a charming Tibetan-owned villa called the Lingtsang reopened as a boutique hotel with opulent, colorful woodwork and courtyard
verandas. And coming soon are the sprawling InterContinental Resort Lhasa Paradise and the 284-room Shangri-La, both scheduled to open in
2013.
#10. Havana
Source/ New York Times Jan 2012..http://www.travelagentcentral.com/newscred?guid=8df08727a627e2c1f60706be61a5562c


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Tanzania Travel & Tourism Economy GDP US$ bn
Date range: From 1988 2010

1988 0.080
1989 0.112
1990 0.116
1991 0.141
1992 0.137
1993 0.125
1994 0.173
1995 0.512
1996 0.543
1997 0.438
1998 0.485
1999 0.615
2000 0.568
2001 0.815
2002 0.930
2003 1.019
2004 1.146
2005 1.275
2006 1.429
2007 1.709
2008 1.951
2009 1.705
2010 1.760



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Tanzania : International Visitor Arrivals Units: '000

Date range: From 1988 - 2010

1988 134.5
1989 142.8
1990 158.3
1991 193.5
1992 209.0
1993 230.8
1994 262.9
1995 295.0
1996 326.0
1997 360.0
1998 482.0
1999 627.0
2000 501.0
2001 525.0
2002 575.0
2003 576.0
2004 583.0
2005 613.0
2006 644.0
2007 719.0
2008 770.0
2009 699.6
2010 718.3



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3.3 Competitor Analysis

Outside of Stone Town Zanzibar lacks services and entertainment for tourists and locals and even in Stone Town a lot is left to desire.

We have unlimited space for expansion in a natural clean environment!!

From our experience at all the major travel trade shows and exhibitions practically all Zanzibar and Tanzania exhibitors fall under the umbrella of
the Tanzania Tourist Board- they are practically all in one area under the banner of Tanzania with the acceptation of Leopard Tours and Safaris
who is a big player and they specialize on Safaris!.

The Tanzania Tourist Board has its exhibition decorated with the Big Five- Lions, Cheetah, Elephant, Leopard, and Buffalos, a bit of Kilimanjaro
and at the bottom some where hidden if you are lucky a bit of beach of Zanzibar!!!

Our Competitors pay approx $4000.- USD for a 4 square meter area which fits in a small table and 4 chairs max!!!

This small table is usually then shared between 2 companies, one a hotel company and the other a tour operator, saving both of the exhibitors
costs.

We plan to hire exhibitors space independently and not through the Tanzania Tourist Board but directly from the organizers of the shows.

We have foreseen taking a space of 12 square meters at shows and exhibitions, next to the Tanzania Tourist Boards exhibition area where our
immediate competitors are located, whereby we shall market ourselves under the banner of Zanzibar with lots of beach, beach, beach,
decoration and the new alternative way of diversifying our marketing by using images of the countryside, wing coconut palms, spice plantations or
a road lined with mango trees in the high season, wildlife can also be used such as bush babies, chameleons or the Red Colobus Monkey, not to
mention the monitor lizard, butterflies and squirrels or birdlife and the Stone Town itself, aerial photography can be very effective too.

The name Zanzibar is really the attraction and should be big and seen to attract customers and distinguish ourselves.


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Tourism: Zanzibar for re-branding.

Zanzibar: Tourism stakeholders in Zanzibar, including government of national unity and private entities are in the process of re-branding the Isles
as a tourism destination. Currently Zanzibar is marketed as part of the Tanzania tourism package but it now wants to carry out more on it own
mark.

The Zanzibar Association of Tourism Investors (ZATI) has said they are working on the new strategy in collaboration with Business Environment
strengthening for Tanzania-Advocacy Component (BEST-AC) to make the Isles a destination on its own right.

According to ZATI director Ms. Julia Bishop, they will work together with the Zanzibar Council of Tourism to realize the new strategy.
The move partly targets to boost Zanzibar tourism arrivals from around the world currently bringing about $172 million annually.

Last year the Isles experienced a decline in arrivals when they received about 81,000 tourists against a projected figure of 150,000.
The fall was linked to the global economic crisis and the swine flu pandemic which disrupted travel plans in 2009.

But by this September 2010 the arrival figures were almost the same as the total recorded in 2009, indicating a rebound in business.

Source: The Citizen on Sunday, 19
th
December 2010, By Alawi Masare

Clients will be offered Tanzania, Zanzibar hospitality, made in Tanzania produce such as spice tea, coffee, liquors- shots of Afrikoko and Konyagi
and sweets- Kashata and halua, bitings- mandazi, cutlesis, kachori and sambusas shall be on offer as refreshments.

We shall be using Innovation- laptops and video projection onto giant screens for presentations to show information, short films and
documentaries about our products and services, advertising Zanzibar and Tanzania in general including local music in surround sound with a
strobe light to attract extra attention and the possibility of changing light intensity and colors to set atmosphere desired as we entertain our
customers within our exhibition area. Khanga, kitenge, Kikois and Masaai clothe, Makonde carvings and Tinga Tinga paintings and flower pots
with plants shall be used for further decoration and interior design all with our logos and contacts for sale or as gifts to potential clients with local
coconut wood used for all furnitures also made in Tanzania.

We certainly intend to be more creative but at the same time make very good offers to customers. Good offers are what sell and the Tanzania
tourist scene is quite expensive so this would be our secret agenda to provide superior offers at a lower cost. We want to offer best value and best
performance per price.

Most of the hotels are copying western styles of products, from their food menus to their decoration is very European!! We want to Africanize our
menus, local delicacies and cocktails shall be incorporated reflecting our culture.


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Competition:

The Botanic Sport and Entertainment Resort offer superior Value for Money

There are several high class resorts on the Island of Zanzibar offering very expensive services and a lot of lower class guest houses offering sub
standard services. We shall find our own "niche" by offering a middle class facility but with quality and more to see and do activities.

There is only a handful of companies offering services to Zanzibar and they are very expensive, whilst we plan to offer a package which costs less
then theirs with more days and nights and with extra services such as full board and tours included.

The cheaper end of the market one can forget, they are sub-standard and most clientele have to put up in very basic accommodation without
breakfast.

The competition has the advantage of having been in the business for numerous years but have to offer their services through a third party, they
usually do not have their own business as a travel agent or tour operator to offer more then just their own property or in the other case they do not
own property and are selling 3
rd
party property.

If you walk into a tour operator/agent shop any where in the world you will find thick brochures / catalogues offering fabulous tours and hotels.

This market is already saturated and has no future due to the large amount of competition.
We plan to offer something different with our tours, finding our own niche, by incorporating the less know attractions and activities. They are
offering mass tourism services in an already saturated market and a large section of the public is tired of these services.

We have the advantage of being a small company offering something new on the market which no one is offering yet and is what a large section
of the public is looking for, a genuine tour package with real atmosphere and purpose.

We plan to offer tailor-made group packages to the public which are not available on the market and by offering almost 100% services through our
own facilities we are flexible, with no middle man involved.

Added Value is the name of the game

The sports that are on offer such as Golf and Squash are not available on the Island, we shall be the first to introduce them.

70% of all visitors onto the island have to drive past our facility heading for East and South Coast Beaches or the Jozani Forest and for swimming
with Dolphins on the South Coast.

All traffic to the north east, east and south of Zanzibar must pass Tunguu, directly.

Accommodation in most big hotels on Zanzibar and Tanzania start from approximate $150.- USD per person per day on half board. We are
starting off with a net rate of $75.- USD per person.


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We have the advantage to offer individual tailor made quality packages with the interests and budget of the client in mind.

We shall not only be offering our own hotel (s) in the future but also our competitors hotels from budget to 7 stars through our websites and other
marketing activities.

We offer travel in individual tailor made packages as every customer is different and has different wishes and needs. The individual tailor made
travel package is not any more expensive then the mass tourist packages being offered by our competition, but is also very personal offering
exactly what the client dreams off.

The competition 7 nights, half board with flight from Europe for around $2400.- USD. We could offer 14 nights with half board for approximately the
same price with excursions and tours thrown in at no extra cost with a lot more to see and do.

We want to offer individual holiday packages which are not available of the markets and no middleman is involved, from start to finish we shall
handle all booking and reservations and manage the ground transfers.

The Competition have very high operational costs for offices and rent of premises, including personal employees, staff expenses and travel, where
as we can operate from the confines of our own properties, private homes or business premises.

We have also roots in the central of Europe making it easy and keeping costs down whilst attending trade shows some of which we are already
familiar with having attending as exhibitors and just as guests.

Most competitors offer their services in 1 language, which minimizes their markets, we are entering the market with 3 languages Kiswahili, English
and German and our marketing efforts will firstly concentrate on the local market due to the fact that the local is always available throughout the
year close to our location, whilst the international market is very seasonal, the German speaking markets of Germany, Austria and Switzerland will
follow and the English market before we venture tackling other language speaking markets such as the Italian.

We shall enter the market with a 4th language once the first 3 language markets have been saturated with our promotions and advertisements
giving us a broader share of the market..

Clients desire our art of travel, deep impressive and atmospheric reaching to the culture of the people.

Our clients can request any special wish and we tailor make the itinerary without any extra expenses to the client which our competitors will not be
able to match as we have in house bookings and reservations servicers through Botanic Zanzibar Tours and Safaris for all other related travel
services.


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Average Prices for a Double Room on Zanzibar from cross section of hotels and resorts

Zanzibar Beach Resort, Mazizini $210
Dhow Palace- Stone Town City Center, $100
Tembo Hotel- Stone Town City Center, $140
Serena Inn- Stone Town City Center, $350
Asmini Palace Hotel $115
Al Johari Hotel $250
Zanzibar Coffee House $160
Africa House $160
Chavda Hotel $130
Zanzibar Palace Hotel $220
Hurumzi/Emerson and Green $185
Swahili House $270
Mtoni Marine $120
Maruhubi Beach Villas $120
Mbweni Ruins $300
Chechevule $300
Breezes Beach Club- East Coast, $260
Zanzibar Safari Resort- East Coast, $360
Karafuu Beach Hotel $250
Ras Nungwi $350
Owners Villa Ras Nungwi $990
Dreams of Zanzibar $400
Neptune Zanzibar $350
Palms - East Coast, $1000
Baraza - East Coast, $1000
Ocean Paradise Resort $300
Shooting Star Inn- North-east Coast, $260
Kichanga Lodge $320
Kinazi Upepo $80
Paje Ndame $80
Fairmont $600
Zamani Kempinski $500
Mapenzi Beach Club $300
Hakuna Matata $250
Arabian Nights $150
Bluebay Beach Hotel and Spa $300
Mchanga $230
Kitete Beach Bungalows $70


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Cristal Resort $120
Paje By Night $120
Bush Mans Hide Out Villa $300
Mr Today Villa $300
Karamba Resort $150
Unguja Resort $400
Royal Zanzibar $400
Gemma $500
Langi Langi $160
Flame Trees $150
Smiles $150
Sunset Kendwa $100
Kendwa Rocks $120
Tamarind $120
Zanzibar Retreat $160
Sultan sands $250
Karafuu Hotel- North-east Coast, $250
Kendwa Breezes- North Coast $120
Ras Michamvi- East Coast Peninsula $160
Tanzanite Nungwi $120
Matemwe Beach Village Guest House $100
Azanzi Beach Hotel $400
Sazani Beach Hotel Nungwi $120
Bellevue, Paje $100
Mnarani Beach Bungalows $150
Pongwe Beach Hotel $200
Casa Del Mar $100
Swahili Beach Resort $150
Sunset Beach Resort $220
Zanzibar Dolphin View Paradise $400
La Madrugada $120
Matemwe Retreat- East North Coast $1000
Matemwe Bungalows- East North Coast $650
Bawe Island- Off Stone Town $600
Changuu Island- Off Stone Town $600
Chapwani Island $360
Sea Cliff Zanzibar $300
Kilindi $1200
DoubleTree By Hilton Zanzibar $300
Z Hotel $220


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Mnemba Island $2000
MyBlue $350
Coral Reef $380
White Rose $300
Samaki $290
Palumbo Reef $280

Average Price For a Double Room: $257.- USD

Botanic Average Price for a Double Room: $150.- USD

Pros and Cons.

Most of the luxury hotels are located far away from excursions and tours and the Stone Town with its history and culture. We are centrally located
offering services to local and international clientele, value for money being a priority with superior services. We are located close to numerous
offices and educational and residential facilities with no real competition for almost 15 kilometers back in the Stone Town or further onto one of the
other coasts.

Most of the competitors are set up to accommodate the foreign visitor and leaving us almost alone to concentrate in tapping the local domestic
market whilst at the same time going for the same international visitor. I am told there are places on the island that even to this day locals of dark
skin are not allowed to enter and be served, this is shame but only plays into our strategy of serving all cultures and races.

The fact is that most of the visitors into Tanzania are locals and or visitors from neighboring countries and from within Africa itself and over 50% of
visitors do not come into the country directly but are arriving through Kenya into Tanzania through northern gateway for safari, then onwards to
Zanzibar. According to the Zanzibar Commission of Tourism, Zanzibar is the number one holiday destination for visitors coming from within Africa
itself.
Our Staff and management will have be able to communicate to most visitors in their international language of choice.
Our variable running costs will be lower then our competitors who have built without architecturally sound financial considerations. Imagine for
example the new Sea Cliff Hotel, Zanzibar stores hundreds of thousands of liters of water in tanks sitting behind the main complex at a lower level
then their rooms and other facilities including an 80 meter swimming pool and all water pressure to the facilities is supplied by pressure pumps,
when power cuts happen which are common on Zanzibar, a 3 month long power cut is not something we are not used too on Zanzibar, hotels tend
to fall back on generator powered electricity to run for 24HRS a day which at an average cost of $200.- USD per hour really eats away their profits.
Have our competitors architects never heard of a Mayan Calender or of a Checklist 2012 or even what the NASA computer has been
predicting all of which has so far been accurate and at least taken abit of caution.


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Our superior design allows water to free fall from our 2 water towers to all our facility without water pressure pumps whether power is available or
not.
All our structures are designed for optimal ventilation cutting out the need for running expensive air conditioning, which often fails in other hotels in
the middle of the night due to sudden power cuts, leaving the guests to wake up in the morning very hot and sweaty as air conditioner has to be
turned on again even when generators start to supply the power immediately after a power cut and even when turned on again once more when
the main power supply returns again in an hour or two it is the same thing, air conditioning has to be turned on again and a lot of equipment gets
electrically damaged in this way on top of it.
We would have a back up generator but would run it to midnight for example if need be and guests would sleep throughout the night without
getting hot and sweaty as is the case in most poorly designed hotels on the island.
The market needs quality accommodation instead of concrete blocks over looking the Ocean, most resorts are poorly designed and badly built
with the exception of the Mbweni, Serena, Blue Bay and Breezes. Our rooms offer almost 100% larger then your standard hotel room on Zanzibar,
not only do we offer a sitting lounge area and a separate bedroom and bath room with a window view from the bat and toilet itself, but a verandah
is also available.

The Power of the Brand

A powerfully branded operator will assist in providing credibility and drawing guests to the resort.

Competitive Landscape

There is not much direct competition in the niche we are going for.

Apart from a couple of restaurants there playing live music once a week, and the Bwawani Hotel which has a local disco, (do not dare enter their
toilets you will have to tip toe through flooded floors), on Zanzibar you only have the Zanzibar Film Festival in June and the Sauti Ya Busara Music
Festival in February both running for just a week or so, no other scheduled entertainment of its sort is planned, apart from the odd full moon party
here and there. We even foreseen these two events changing venues into our facility in the future due to there limited space and opposing Muslim
culture on the island, these events are directly in conflict wit neighboring mosques in the Stone Town, no sufficient parking is available and
infrastructure such as toilets with enough running water and decent food is not available at the venue.

As a matter of fact due to the culture of the island (over 90% is Muslim/Islam) any form of entertainment is not encouraged as the narrow streets in
the Stone Town are crowded with Mosques in every corner, so even if you are sound proofed, it does not help as clients leave premises
sometimes singing at the top of their voices, also no proper car parking is available in the Stone Town.

No one is really planning a serious entertainment facility on Zanzibar island so we surely know we are doing the right thing.

Goals


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Prices to be value for money, credit policies will be on a cash basis.

Internal Strengths

Financial strength should be a lot higher then we have estimated as we have been more then modest in the estimates
We have a very healthy and experienced marketing and promotional program and budget.

Operational advantages, strategic partnerships will be easily formed, we are locals of mixed heritage and can identify with all cultures making it
easy for us to get accepted by a wide range of strategic partners.

Company morale, personnel motivation, commitment, productivity shall be managed by myself and the staff themselves

Market Share and Distribution

Italian investors mainly have about 50% of the holiday market to Zanzibar, mainly direct packaged holidays with flight and all inclusive or full board
being offered direct out of Italy to Zanzibar. The rest is controlled by a mixture of companies local and foreign.

2 main tour operators on Zanzibar handle the majority of the business with another 200 odd smaller companies picking up the rest.

We shall obtain market share as we are offering a new product that is unique, better and more value for money.

Strategic Opportunities

Our competitors are vulnerable as they have higher running costs causing them to close down over low seasons, many have poor design and
weak marketing strategies and knowledge and have not diversified to cut out the middleman when it comes to offering services such as tours and
excursions, safaris and car hire, flight bookings and any other extra whim the client might have.

Quite a few do not even sell alcohol in the Stone Town. No one has enough space in the Stone Town to start even dreaming of a concept like
ours.

Most competitors are asleep regarding the potential of domestic tourism and they have not build for it, they are all concentrating on foreign visitors
and up market is there goal in most cases.

We shall be able to take advantages of these weaknesses by offering great incentives over the low season, we are only 20 minutes out of the
Stone Town and can attract locals from the whole surrounding area and island who have nothing built for them, all the competition is doing is
targeting mainly the foreign tourist and has forgotten the local domestic market.

Barriers to Market Entry and Exit

Some of the more common barriers to entry for new competitors will include:


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High capital costs of acquiring a location and large enough piece of land as we have not far from the Stone Town and the unique features of the
land will be a hard act to follow, let alone getting a good designed facility at a reasonable cost to be able to construct and copy our concept.

We shall find it very easy to exit ourselves at any point we wish.


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4. Marketing Strategies and Sales
4.1 Introduction

We shall begin by marketing locally on the island, at grass roots level is the best to get a loyal local customer base and achieving market
penetration onto the mainland and neighboring countries before venturing further into international markets, obviously through online distribution
channels we shall be entering international markets immediately.

The target market segments we wish to penetrate is the local domestic market at first, and we plan to achieve this through, multi-level marketing,
the Internet and the period for capturing a reasonable percentage of the market share is one year. We shall be using beach boys and others
around the island to spread the word, flyers and posters, local radio and press, brochures to governmental departments and Tanzanian foreign
consulates / embassies and big private companies as we follow up with sponsorships with some of them for future events.

All tour operators and travel agents on the island and on the mainland shall be informed and contracts offered to them including marketing
materials including neighboring countries such as Kenya where a large number of tourists pass through on their way to Tanzania.

We shall also target cruise ships and airlines operating in and out of the island, local and international, their crew and stationed managers would
be targeted.

Our entertainment package shall be hang in even our competitors receptions and foyers as they are not offering entertainment or a golf range and
public relations will be getting off onto a very good start as many of the owners of hotels and resorts being our competition would still find it a
pleasure to see us provide services they do not cater for to themselves and their guests.
4.2 Market Segmentation Strategy

We shall be using a combination of strategies:

We shall be segmenting customers based on geographic area, the whole of Zanzibar will be targeted, including major cities on the mainland of
Dar es Salaam, Arusha and Mwanza, the rest of Africa, (Zanzibar is actually the number 1 travel destination for tourism coming out of Africa)
Europe including emerging markets in the East and the Americas, Asia, places like China and Indian and as far as Australia.

We can segment customers based on product usage, targeting groups and clubs such as cycling, motorbikes clubs, scouts, schools and higher
learning centers and institutions, governmental offices to mention a few, imagine a Queen/Freddy Mercury (Freddy Mercury was born on Zanzibar
and he is their most famous son you could say) holiday package with entertainment live or otherwise of your favorite group.

We shall also be segmenting customers based on lifestyle (which includes: values, beliefs, perceptions, leisure activities, preference for social
events, sports interest, media usage, political views, etc a good example would be simply targeting FaceBook users and even having a FaceBook
Night Party packed with transportation, accommodation tours and excursions on the island from any destination you request.


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4.3 Targeting Strategy

Our targeting strategy to be implemented is mixed with Mass Marketing: going after the market as a whole with one offer that answers common
needs incorporating Differentiated Marketing: going after several market segments with offers tailored to each with Target (Niche) Marketing: going
after a small segment or sub-segment with a tailored offer.

Encouraging public participation programs in the cultural awareness, including public institutions, private individuals, non-governmental
organizations and businesses.
4.4 Positioning Strategy
Our positioning strategies include:

Positioning in relation to a product class or attribute (e.g. low energy consumption, environmentally friendly, efficient, time saver), relation to target
market, price and quality (low-price leader with luxury)

Corporate Message and Image

The message we shall portray through all our marketing efforts will be clear, consistent, and reflect our corporate image.

Image can be portrayed directly (through a description of products, pricing, services, etc.) or indirectly (through suggestive design elements, logos,
or uniforms, etc.) Our strategies on culture and tradition include to:

Encourage tourism with a strong authentic character with its roots in and true to Zanzibar/Tanzania cultural and tradition. The cultural and historic
attributes of Zanzibar especially the Green Island itself, its rich fertile countryside of winding coconut trees and spice plantations will dominate the
marketing message, more so than traditional sun and sand beach tourism. We are considering adopted the bush baby as our mascot.


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4.5 Product/Service Strategy
Our product/service has been designed and tailored to meet the needs of our target customer due to its traditional African Village design, its like a
safari camp boma in the middle of the Zanzibar countryside, apart from a villa here and there on the island this idea alone is already unique.
We are offering new and different products and services on the island such as a golf range and safari villa style of accommodation complimented
by entertainment, shopping and dining including health and fitness- sport. Customers are always in the look out for something more creative, most
of the competition is to much alike, can you really differentiate from a Hilton and a Kempinski or a Holiday Inn, when soon gets bored of the same
kind of product being offered by most of the competition.
Our attractions will provide the emerging power. Tourist attraction, together with access, accommodation and other services are the main feature
that distinguishes one tourist destination from another.

The objective is to diversify the tourist attractions in order to achieve a balanced growth of the tourism industry and maximum benefit and to
strengthen the cultural industries, theaters, cultural and community participation as a product diversification to harness through the following
strategies:-

Increasing opportunities for day excursions by tourists through offering a wide variety of activities, sports, entertainment, historical sites and peace
and tranquility.

Improving displays that interpreting Zanzibar heritage and way of life, complemented by a cultural center, where there is art, theaters, etc.

Developing cottage industries for artisans and crafts people, with an increase in sales outlets and locally managed shops.
We shall start our own Miss Botanic Tunguu competition subject to permits and try and work with the Tanzania Tourist Board with the guidance of
the Zanzibar Commission of Tourism to bring to our venue further fashion and beauty pageants such as Miss Culture, Miss Tanzania, Miss
Zanzibar, Miss Tourism, Miss Domestic Tourism and shall try and raise sponsorship from big firms to promote bands and events.
Sponsors could include brewery firms such as Serengeti Lager and Tanzania Breweries and mobile telecommunication companies such as Airtel,
Zantel and Vodacom or local airlines such as Coastal Aviation, Precision Air, ZanAir, RegionalAir, FlightLink just to mention a few.


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4.6 Pricing Strategy

Wholesale:: seasonal pricing

Profit: 50%

Our pricing will be very competitive; Zanzibar and Tanzania have become very touristic with rates in most places over priced.

For example on beverages we can offer rates at 40% less than our competitors.

An average double spirit/liquor with a soft drink, lets say a cocktail costs $8.- USD in most bars and restaurants, we could easily offer this same drink
at $4.- USD with a 60% profit margin.

Most bars and restaurants on Zanzibar charge $2.50.- USD upwards for a local beer which we can easily sell at $2.- USD or under with a 60% profit
margin.

Restaurants are charging an average of $14.- USD for a single meal on their menus, we can offer similar meals at an average cost of $8.- USD

We could even offer promotional days with eat as much as you can offers starting at $15.- USD per head and some others are charging 2 or 3 times
that much.

Sports and Entertainment shall have sponsorship meaning we can offer competitive rates to our customers.

Sport Prices

Outside visitors will be charged rates as are standard, resort overnight visitors will only have to pay a deposit for equipment used otherwise all sport
will be free of charge to them.

Our rates will encourage visitors to book even during the low season when we shall be offering special rates and packages to target groups such as
students finishing exams or low income families and still realize a good profit.

Our lower accommodation rates yet larger rooms provide the customer superior services and a wide range of free sporting, shopping and
entertainment activities.

No credit will be offered to customers

Credit Card payments shall be accepted at the hotel and over the internet;

We intend to interest one of the local banks to install an ATM on the premises.


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4.7 Distribution Channels
Products are sold worldwide through the internet and sales agents, wholesalers, cataloguers, mass merchant retailers, consolidators and
distributors. Local tour operators and travel agents on the island and on Tanzania mainland especially in Dar es Salaam, Arusha and Mwanza will be
targeted to market our products and services.
Our local clientele will spread the word by mouth as usual of you have a good affordable attractive product people will suggest it to others.
Travel Marketing and Promotional Sales Agents- super affiliates will be appointed and targeted giving us a much bigger slice of the market.
Marketing and promotional agents will receive 20% of sales as commission.

Zanzibar Magic Company Limited already has cooperation partners and contacts to clients.
Markets will be targeted in conjunction with an outsource partner responsible for operating the hotel to be identified in the future. Such a partner will
be selected partly for their international networks and ability to reach what are perceived to be the key markets. It is essential that the resort is able
to reach In-bound traffic to Sub Saharan African destinations through sales representatives in London, Germany, Italy, France, Egypt and North
America. The resort will be marketed at all the major International Trade Shows. Emerging markets of China, India and
Travel Technology shall be used and integrated into our marketing and Distribution Plans
Computerized Reservation Systems (CRS) and Global Distribution Systems (GDS) will be used in the form of an application known as a MASHUP
which can be loaded with all our products to be distributed by all players in the travel industry, the Mash Up application will also offer clients to book
direct on our websites and through the whole travel industry our products and services including other hotels, flights, car hire, travel insurance and
other travel related services.
Mash Up applications could be tailor set to cover our publications on other Travel and social websites, including Google Earth; this is at the cutting
edge of technology. Vendors will include: Infox-usa.com, Amadeus, Sabre, Worldspan
http://www.pr.com/press-releases
Distribution through personal contacts- for instance Government and institutions, corporate business, seminars, meetings and incentive travel for
groups is another niche not fully exploited. I know for a fact for instance that companies such as Siemens or Bmw have a yearly overseas company
meeting and its Greece or Cyprus every year, I believe with a right Tanzania Safari combining Zanzibar Island Group Meeting Incentive package we
could see them coming to Zanzibar and Tanzania in the near future!!.

In overall terms, the major source markets for vacation travel to Zanzibar will continue to be the European markets, especially the UK, Italy,
Scandinavia, Germany, France, the Netherlands and Switzerland. The U.S. market is considered to have less growth potential in the short-term -

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partly because comparatively few Americans visit Zanzibar as a stand-alone destination and partly because Americans are less likely to wish to
travel overseas in the present uncertain geo-political climate.

The main marketing effort will be focused on the more affluent sections of the major European markets. Other markets should be serviced mostly via
the Internet. This prioritization of markets has implications for overseas representation and trade fair participation.

The Resort will develop niche markets where it has a comparative advantage, namely Entertainment and Sport; Golf; cultural tourism; eco-tourism
weddings and honeymoons and smaller conferences, meetings and incentive travel.

Special promotions will be undertaken to increase occupancy levels during the off-season, including the development of attractively priced packages
aimed at the domestic and regional markets.

Tactics and Strategy:
The retail marketing strategy of the Botanic Country Resort centers on creating a corporate identity that clearly defines our market niche in terms
that benefit our customer. Other specific strategies that will be used follow:
Gourmet Dinners and Guest Speakers - Our gourmet dinners will be a blockbuster event. One of our guest chefs and guest speakers will
beArchbishop James V. Humble, founder of the Genesis 2 Church of Health and Healing. Other guest chefs will be other distinguished guests
in alternative healing and nutritional herbal medicine from within and outside the country.
Grand Opening - A Grand Opening is the most successful of any promotions. With manufacturer support, a large number of door prizes can be
given away while instantly building a mailing list. Loss leader pricing on a few high volume consumable products will attract stories and traffic.
Word of Mouth - By giving first-time customers great service and a fair price, the word is sure to spread. Also, the many industry and business
contacts that we already have in the area will prove to be most beneficial in spreading the word.
All marketing decisions with regard to specific media choices, frequency, size, and expenditures will be conducted on an on-going basis with careful
considerations of returns generated.
The Botanic Country Resort and Botanic Zanzibar Tours and Safaris will be presented in the form of a brochure. The brochure will be distributed
to all players in the tourism and hotel industry, including International and local tour operators and travel agents.

The brochure will be distributed to Companies, Institutions, potential Sponsors, Airlines, suppliers and all Tanzanian Embassies, Consulates and
diplomatic missions abroad, including all foreign Embassies, Consulates and Diplomatic Missions in Tanzania.

Examples include: Zantel, Vodacom, Tigo, Zain, KLM, Emirates, Egypt Air, British Airways, Zanair, Tanzania Breweries, Serengeti Lager, Coca
Cola, Pepsi, Wine Companies to name but a few. Companies shall be offered a chance to open a shop or an office on our premises.


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Trade Shows, Chamber of Commerce and Exhibitions from different countries shall be encouraged to use the facility.
All the above mentioned including the press and all important journalists and authors in travel will be informed and invited to the opening day at the
Botanic Country Resort.

The following steps are planned as an advertising schedule:

Location/Destination Dates

1. Market Segment: Super Affiliates, wholesale, major Travel Agents/Tour Operators:
a) Attend trade shows and maintain the existing
Contacts with follow ups Jan/Feb/Mar/May/Nov
b) Research on commercial partner,
wholesale consolidators major dealers and release of
new rates facts and contracts. Mar/Sept

c) Participate in Special advertisements
Campaigns in the form of flyers, shell folders
and INFOX Specials Videos on all travel sites specializing
with videos
www.infox-usa.com/
www.travelistic.com
www.tubemogul.com Throughout year
d) Commercial conception with Telemarketing
and on-line marketing Jan/Feb Mar/May/Nov
e) Organize breakfast seminars with consolidators,
tour operators, travel agents, major players in the
travel industry and best affiliates Apr/Aug/Oct/Nov
f) Organize training trips and agent nights May/Sept
g) Overseeing personal calls to travel agents,
tour operators and super affiliates Throughout year
h) Set up and introduce an advertising plan to be forwarded
by postal dispatch to major dealers and consolidators .
Create programs of the year for two seasons Jan/Feb
i) Sales training Mar/April/Aug

2. Market Segment Air Flight and Boat Operators.
Co-operation Mar/Nov
charter program
Develop further possibilities on
new packages and destination Throughout year


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3. Market Segments: Travel Agents / Tour Operators
a) Target and participate with travel agents,
tour operators, tourist boards
and other tourism institutions Apr/Jun/Sept
b) Advertisement presentation of
the Botanic Country Resort Throughout year
c) Organization of family and student travel . Jun/Sept
d) Direct Competitive Online Programs
Inclusive travel Discounts through our websites

www.zanzibarmagic.com
www.madeintanzaniasafaris.com
www.tanzaniasafariszanzibartravel.org
www.botanicresortzanzibar.com
www.zanzibarweddingtanzaniahoneymoon.com
www.tanzaniatreasures.com

and further through

Blogging
Rss Marketing
Social Bookmarking
Social Media Marketing Sites
Video Marketing April/Jun/Sept

e) Combine with consolidators, travel agents, tour operators on
Creativity and get the local newspapers to participate Apr/May/Jun/Sept
f) Advertisement for travel agents
and tour operators, seminars and online competition Jun/Sept

4. Market Segments: Groups and others
a) Introduce destinations/hotels to group departments
of travel agencies Throughout year
b) Conduct mailings to incentive agencies and readers cycles May/Jun/Sept

5. Market segment: Package Tours
a) Weddings, Honeymoon and Adventure Throughout year
b) Promotion of special tailored packages for niche markets Mar/Apr
Music Concerts and Shows


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Sport Tourism
Bike and Cycling Tours and Excursions
Golf and other Sport Holidays
Eco and Cultural Tourism
Student and Family Travel
Weddings and Honeymoons
Seminars and Meeting Incentive Group Travel
c) Creation of adventure packages, dive packages or
Fly & Drive Packages for consolidators May/Sept

6. Market Segments: Direct Marketing

A) participate in important customer introductions
at the following travel and tourism
Exhibitions and shows.

BOOT Duesseldorf, CMT Stuttgart, Germany January
Ferienmesse Vienna, Austria February
Reisen Hamburg, Germany February
CBR Munich, Germany February
BIT Milan, Italy February
www.bit.fieramilanoexpocts.it/?id=Mi0xODAtei1FTkcg
ITB Berlin, Germany March
www1.messe-berlin.de/vip8_1/website/Internet/Internet/www.itb-berlin/englisch/index.html
Indaba- South Africa
Karibu Travel and Tourism Fair, Arusha, Tanzania June
www.karibufair.com
Afrika Tage Munich and Vienna June/August
www.afrika-tage.de
TTW Montreux, Switzerland October
www.ttw.ch/html/english/start.html
TTG, Italy October
WTM London, England November
www.wtmlondon.com
Reisen, Cologne, Germany November

b) Introduction to travel agents and tour operators
as well as famous tourism industry players.
Distribution through INFOX
www.infox-usa.com/ Mai/Jun/ Sept/Oct


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Distribution and Representation:
c) Participation in special events with different
Organizations and tourism commissions. Apr/Sept
d) Production of special flyers, stickers and poster,
Cards, t-shirts, caps and accessories for super affiliates
and customers a like. Jan/Feb/Oct
e) Introduction of media plan for customer conceptions Nov/Jan
f) Organize Travel press releases for daily,
weekly and monthly newspapers and magazines.
Submitting to different online story submission services,
Online, travel sites and other Web 2.0 pages related
To travel. May/Jun/Sept

www.infox-usa.com/
www.prweb.com
www.newsvine.com
www.digg.com
www.stumbleupon.com
www.propellor.com
www.scribd.com
www.docstoc.com
www.tripadvisor.com
www.netscape.com
www.shoutwire.com
www.reddit.com
www.slashdot.com
www.technorati.com
www.wikitravel.com
www.facebook.com
www.myspace.com
www.spicypage.com
www.squidoo.com

e) Introduction of medium plan for Customer conceptions
f) Organization of resort travel press for the daily
Weekly and monthly Newspapers and magazines May/June/Sept
A Computerized Reservation System (CRS) will be set up for all Customer reservations and bookings. CRS also offers the customers other 3
rd
party
travel services giving the customer real time information and a chance to organize and book online fast to fulfilling the customers desires, interest
and wishes.


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This will also help us enter the international market and offer not only our products but also third party travel products from reservations of hotels,
flights, buses, boats, trains, safari and car rentals.
In the future the yearly events and shows exhibition calendar at the Botanic Country Resort will include dates for a proposed local Travel/Tourism
show for Zanzibar, Tanzania and International exhibitors!!
4.8 Promotion and Advertising Strategy

We shall aggressively market the project and have commission agents locally and in ever corner of the planet.
Contacts to travel agents are readily available through our already operational websites:

http://www.zanzibarmagic.com, http://www.madeintanzaniasafartis.com http://www.tanzaniasafariszanzibartravel.org

Travel Agents and Tour Companies are interested in offering our packages and services through their offices as soon as we have brochures
available.

We shall use personal communication to meet market players and customers to market Zanzibar and Tanzania. As bookings and reservation agents
and tour operators we provide travel related services through Botanic Zanzibar Tours and Safaris side by side with the Botanic Country Resort,
We intend to promote the Botanic Sport and Entertainment Resort and Botanic Zanzibar Tours and Safaris at Travel Exhibitions and Shows.

Public Relations-
Trade Shows Chamber of Commerce and Tourism Exhibitions- We shall attend In Tanzania, South Africa, Germany, United Kingdom, Austria,
Switzerland and Italy to start off with, We shall look at emerging markets such as North America, China, India, Russia and the old Eastern European
block Countries. Probably have some tie & dye element in them. The South African Market has started to open up and is presently the fastest
growing section of the market. Recently North American numbers of visitors have been on the rise and new markets in Asia are of interest. a very
lucrative emerging market is China.
Marketing Materials-

1000 x Botanic Country Resort Brochures for shows and Exhibitions- The
Folder will be made from the banana tree papyrus or Leather.
$5000

1000 x Botanic Zanzibar Tours and Safari Brochures for shows and
Exhibitions. The folder will be made from the banana tree papyrus or
Leather
$5000


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Print Ads - Keeping the Botanic Country Resort name in front of the customer while getting established will be necessary. We plan on running
limited space ads in the local newspapers to keep our name and phone number in front of the consumer. We may attempt to showcase a single
product in an effort to return revenue from the ad. Our past experience has been that showing measurable revenue from these types of ads is
difficult. In the future we plan on utilizing vacation magazines and affluent Africa Travel magazines as a method of increasing our sales revenue.
Marketing Vehicles

1000 x A2 Size Botanic Country Resort Posters to be distributed in other public places, hotels, resorts, restaurants, bars, shops, offices and
business premises on the Island including on boats and in aircraft
$500

1000 x A4 Flyers with Botanic Country Resort
$300

Designer Postcard - We will be holding a local contest for students to design a postcard for our guests to eventually buy. Our pricing for postcards
is $125.00 per 1000 and includes aqueous glossy film coating. The winner of the annual contest will receive a cash scholarship and internship with
us. 4000 x Post Cards with Botanic Country Resort
$500

200 x Car Spare Wheel Covers Logo for private cars, taxis and buses for Distribution mainly on Zanzibar
$1000

1000 x Stickers with Logo for private cars, taxis and buses for distribution mainly on Zanzibar and in Dar es Salaam and Arusha
$500

1000 Maps of Zanzibar and Tanzania with our logos and company information for distribution at shows and exhibitions
$2500

Apparel - We know several people in the area who produce embroidered apparel such as will be on our robes. A line of premium Botanic apparel
could be designed and produced in very small runs to reduce inventory costs. These can be sold or given away with qualifying purchases to further
expose the Botanic name.

500 x T- Shirts- Mainly for Local Distribution Would also be for sale.
$1000

500 x Caps Mainly for Local Distribution
$700

500 x Key rings Mainly for Local Distribution
$500


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1000 x Pens and Pencils with our logos
$500

1000 x Business Cards
$200

200 x Letter Heads
$100

30 x Road Banners
$1500

1000 x Balloons with Logo and contacts
$500

Location of Road Banners made in Canvas.
Malindi
Harbour
Darajani
Airport
Old Fort/Forothani Garden
Mazizini
Mbweni
Tunguu Junction
Nungwi
Paje
Chwaka
Uroa
Bububu
Michenzani
Stone Town Old Post Office
Shangani
Vuga by Big Tree
Mchangani
Mlandege
Magomeni
Kariakoo
Ccm
Kizimkazi


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Makundichi
Central areas of the island with high local population
$2000

12 x Permanent Road Board on Zanzibar Island at major road junctions

Location of road sign board in Brick/Stone/Wood
2 x Entraces of the Botanic Country Resort
Tunguu Junction
Chwaka Uroa Junction
Chwaka Tunguu Junction
Paje Junction
Nungwi
Kinyasini
East Coast and South Coast Junction
Chwaka Tunguu Junction
After Mali Tano
Approx Mali Nane
$6000

1000 x Opening Day Invitation Cards
$400

Recording the project and Zanzibar, Tanzania attractions and events of interest which shall be edited and uploaded to websites and further
distribution to the general public through working partners and the internet in general.
$500

500 x CD/DVD Discs with our products & services shall be distributed at trade shows and to associates in the market. These shall be packaged in
Kitenge!!
$400

Rubber Stamps with Logos and Contact Information
$50

Email- Newsletter Soft ware- Open Source php.list
$50

Optional idea: Khanga / Kikoi / Seruni material with our logo and contacts on it to be given to overnight guests as a gift on arrival. This was original
the Revolutionary Government of Zanzibar Policy to gift all female international arrivals a pair of khangas at the airport on arrival as a gift and to
sensitize the visitor to the modest tradition on the island of having yourself decently covered.


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Grand Total $29,700.- USD

Mr. Daud John Kiango and the Marketing and Promotions Trainee Manager will participate in important customer introductions at travel and tourism
Exhibitions and shows locally and internationally.

Mr. Daud John Kiango has already in the past attended such shows privately to see what the competition was doing and the trade in general, but
has also participated in several shows in Munich, Germany and in Vienna, Austria with a private stand mixing Swahili Food-catering and travel.

My sister Anna Mannes based in Munich, Germany and other relatives shall from time to time lend assistance at these shows, Anna Mannes is
already familiar with shows and exhibitions related to Africa where she offers services as a natural healer. My Aunt, Ms.Heidi Loyds has for years
being taking part in shows and exhibitions as a gemstone dealer out of Tanzania who I have also assisted in the past on her stands.

Promotional Budget
We foresee using about 10% of or sales towards promotion budget.


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4.9 Sales Strategy

Mass Communication:

Advertising- Radio, Television, Magazines, Newspapers, World Wide Web, Mobile
Radio advertisement is still cheap on the island and I have personal contacts to the owners, we shall also use 1 or 2 of the mainland radio stations
such as Kiss FM to reach a broader market.

Local Television advertisement shall be kept to a minimum but shall be used. Telemarketing through distribution channels in Europe are part of our
plans.

We shall also get our brother sound systems and DJ in Dar es Salaam including local bands and artists to promote our products including local cable
channels and possibly with DsTV which has a large African coverage and following, local cable TV and private cable broadcasters in pubs and
hotels shall be approached.
Press Releases - The local papers and magazines have offered to run releases and/or stories concerning the opening of the Botanic Country
Resort and attractions. We will also use the above media to run new art releases showcased in the B & B monthly.
Our own Video Marketing program is a must, we shall do this through www.TubeMogul.com , www.Youtube.com and other travel video specialty
websites such as www.Travelistic.com , not to forget www.FaceBook.com

Travel related publications and magazines are widely circulated through out the whole country with some of the major players having their own
publications, we would immediately establish our advertisement presence in Tanzania through local magazines and publications which have a very
wide circulation throughout the country.

These include:

Swahili Coast
Karibu Dar
Advertising Dar and numerous online free classifieds
Dar es Salaam Guide
Precision Air In flight Magazine
Coastal Aviation Inflight Magazine
Twende ZanAirs Inflight Magazine
Air Tanzanias Inflight Magazine
Karibu Travel and Tourism Fair and others


98
Print Ads - Keeping the the Botanic Country Resort name in front of the customer while getting established will be necessary. We plan on running
limited space ads in the local newspapers to keep our name and phone number in front of the consumer. We may attempt to showcase a single
product in an effort to return revenue from the ad. Our past experience has been that showing measurable revenue from these types of ads is
difficult. In the future we plan on utilizing vacation magazines and affluent Africa Travel magazines as a method of increasing our sales revenue.
Unique Artist and Historic Gallery in House: The Botanic Country Resort will be the home to a local and unique artist who has all of their works
displayed throughout the inn. All of these items will be for sale. The Botanic Country Resort is therefore populated with free and beautiful works.
Also, each month on the second Wednesday, we will host a wine (non-alcoholic), cider and cheese night with historic unveiling of "this month's work
of art."
A Sky Beam with a long distance range to possibly cover the whole island from our central position shall be installed.

Both the Botanic Country Resort and the Botanic Zanzibar Tours and Safaris will have their separate websites and blogs.

Social Websites such as www.Facebook.com, www.MySpace.com www.spicypage.com, www.squidoo.com and others shall also have our
presence.

Advertising, Design and Printing could be handled by a local company such as ZG Design based on Zanzibar, in Dar es Salaam several companies
and individuals offer these services too.

Copy of Advertising Expenses.xls
http://www.botanicresortzanzibar.com/images/copy%20of%20advertising%20expenses.xls

4.10 Sales Forecasts

Income from: 100% 80% 60% 50% 40% 30% 20%
20 Rooms @ 150.- USD. 1095000 876000 657000 547500 438000 328500 219000
Restaurants 150 x Day@8.- USD 438000 350400 262400 219000 175200 131400 87600
Events1000 x Month@5.- USD 120000 96000 72000 60000 48000 36000 24000
Bars 50 x Day @5.- USD 91250 73000 54750 45625 36500 27375 18250
Bookings/Reservations 120@500USD. 60000 48000 36000 30000 24000 18000 12000
Sport tuition fees x 2 @30 USD 36500 29200 21900 18250 14600 10950 7300
Golf Range x 10@5.- USD 36000 28800 21600 18000 14400 10800 7200
50 Shops Rent @300.- USD 180000 144000 108000 90000 72000 54000 36000
Car Hire 10000 8000 6000 5000 4000 3000 2000
Spa/Massage Parlour 4xDay@20.-USD 29200 23360 17520 14600 11680 8760 5840


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Squash x6@5.- USD 9125 7300 5475 4562.5 3650 2737 1825
Tennis x4@5.- USD 7300 5840 4380 3650 2920 2190 1460
Fitness center x5@2 USD 3600 2880 2160 1800 1440 1080 720
Table-Sport 10@1.- USD. 3600 2880 2160 1800 1440 1080 720
Conference/Partys/Functions x15@200 3000 2400 1800 1500 1200 900 600
Total 2,122,575 1698060 1273545 1061287 849030 636772 424515
Monthly 176881 141505 106129 88441 70752 53064 35376

Copy of Sales Projections.xls

http://www.botanicresortzanzibar.com/images/copy%20of%20sales%20projections.xls

Other areas of revenue such as bicycle hire, laundry, telephone charges from rooms, business center, babysitting, internet, medical, mini bar have
not been included in our estimates above.

Our sales forecast has been set very modestly, not only are our rates low to entry the market with plenty of room to rise rates, but we have also
estimated low number of sales units and used very modest estimate for daily sales and even with these minimum forecasts we can still make a profit
in a very short time span.

Accommodation rates will vary though due to seasonality and rooms preferences, single, double/twin and triple bed rooms rates will differ
accordingly but for the sake of simplicity we have used an average rate based on a double/twin room.

Seasonal Ranges:

Low Season
01.April - 15.June
01. October 22
nd
December

High Season
07. Jan - 31.March
16.June 01. October

Peak Season
23. Dec - 06. Jan


100

During period 23.12.2010/2011 to 06.01.2011/2012 a minimum stay of 4 nights is mandatory in most hotels / resort on the island.

Christmas supplement (25.12.10/11) US$ 30, New Years Eve supplement US$ 40 is also charged extra per person per night and as not
been included in our estimates.

Children policy:

0 5 years: up to 2 Infants or children free of charge (foc) sharing parents room with existing bedding, cots foc.
6 12 years: up to 2 children 50% charge sharing parents room with existing bedding, extra bed US$ 10.
6 12 years: up to 4 children in own room; 50 % of adult charge (except from 23.12.2010/11 to 06.01.2011/12)

Cancellation and no show fees:

- from 10 days till 3 days before arrival - 3 days will be charged
- from 2 days to no show 50% will be charged
- In period 23.12.10-06.01.11 - 100% rates will be charged

5. Development
Steps that we need to accomplish to get the business up and running are securing finance followed by quick implementation of the project by
completing buildings and the facility equipped and staffed up and ready to run as soon as possible.
5.1 Development Strategy
Finding the right loan and or investor are major factors which need to come together to make our concept work.
5.2 Development Timeline

In short we are up and running immediately with what resources we have.

After the takeover of Exotic Promotions Company Limited, we expect to have in another 6 months the main entertainment area operational before
the end of the year, which would include restaurants, bars, shops, dance floor and stage. Workshops and structures such as water towers and
swimming pool and infrastructure shall also be mainly completed and the golf range.
These developments shall be followed by room developments to be completed by late 2012.


101
5.3 Development Expenses
Development costs are as follows:

Use of Funds

Buying the Business/Project 1,500,000.00 USD
Building & Construction 455,000.00 USD
Repair & Renovation 278,000.00 USD
Infrastructure & Landscaping 40,000.00 USD
Inventory 144,750.00 USD
Equipment & Machinery 84,700.00 USD
Furniture & Fixtures 82,290.00 USD
Marketing Materials 29,700.00 USD
Working Capital 100,000.00 USD
Operational Start Up Costs 46,000.00 USD
Vehicles 96,000.00 USD
Opening Advertisement Costs: 2,000.00 USD
-Contingency: 25,000.00 USD
-Packaging, Freight and Clearing fees: 20,000.00 USD

Total 2,903,440.00 USD

6. Management

The company will be run by me possibly assisting by a foreign investor with experience in the travel and hospitality business, assisted by a foreign or
local general manager, other key positions being food and beverages, sales, marketing and promotion, administration, accounts and house keeping
all to be filled by highly experienced and qualified employees supported by a head cook, kitchen help, barkeepers, waitresses and waiters,
watchmen and gardeners, housekeepers, a DJ/Electicial, driver and guide.

1 Managing Director- Daud John Kiango Owner and Director of Zanzibar Magic Company Limited, responsible for all operations.
Sales and Marketing and employment of Managers and staff. has 20 years experience in construction and building, catering and is a webmaster.

1 General Manager Local or foreign, qualified, with minimum 5 years experience responsible for the day to day running of the business, duties
include, overseeing all departments and staff of the Resort and providing daily reports to the Director. Knowledge of minimum 2 languages
compulsory. Supervising a successful training scheme to the staff.

Retainer Monthly 800,00 USD Per annum 9,600,00 USD

1 Food and Beverages Manager with minimum 3 years experience in the Hotel Industry. Responsible for stock levels and rotation for four bars, four
restaurants, one bakery and coffee shop. Other responsibilities include knowledge of current suppliers, Customer requirements and service.


102

Retainer monthly 400,00 USD Per annum 4,800,00 USD

1 Trainee Sales, Marketing and Promotion manager- Assisted by 2 qualified and experienced Bookings and Reservations agents, Responsible
for Customer service, tours, public relations and advertising. Reception and front desk duties.


1 Administration department, one full time administrator- Overseeing turns and takings, income and expenditure, salaries.


1 Accountant,


1 Head Housekeeper, 15 years experience in the Hotel Industry. Responsible for overall presentation of quality accommodation, service and
training in housekeeping.

Retainer monthly 300,00 USD Per Annum 3,600,00 USD

1 PGA Qualified Golf Professional and Sport instructor or a Karate Master. Years experience in the Golf and Sport Industry.
Sports Manager responsible for sports, Developing sport academies, tuition and sales.


Subtotal 36,400.00 USD

Further possible staff:

Incase of sudden illness or accident the project would be led by the investing partners or by members of my family. My mother Mrs. Hildegund
Kiango who resides in Munich, Germany has lived for over 30 years in Dar-es-Salaam and worked at the German Embassy.
She lives in retirement now but is in good health and knows Tanzania and Zanzibar well and speaks Kiswahili fluently.

My younger sister Mrs. Anna Kiango Mannes, married to a German/Tanzania architect who also resides in Munich Germany. Have 3 grown up
children 1 already studying tourism in Germany. Ages 21, 18 and 15. I am in good physical condition and mental state.

Employees:


103

There is a significant labor pool from the villages of Tunguu and neighboring areas to provide labor resources for the development. We will be open
24 hours a day, rotating on day and night shift basis. There are currently 3 managers and 7 employees at the facility. Our target needs in a year for
the facility are 5 managers and approximately 31 employees. Staff training compulsory, provided by the managers and Trainers at no costs to the
staff.

All employees will work on a full time basis, a 3 month probation period with renewable yearly contracts.

We shall also be using Qualified Volunteers in Gap Years and other Experts to supplement our staff from time to time. www.globalxperience.com
www.linkedin.com. Contracts and Work Permits provided if required.

The Botanic Country Resort provides staff accommodation, meals, water and electricity, Minimizing transportation costs.

Personal health insurance and benefits, including 4 weeks vacation per year and ten paid sick days.

Costs amounting to: 63,580.00 USD

Our remuneration package is very attractive for hotel employees who will receive well above the minimum wage for Zanzibar.

Retainer monthly Per annum
1 Chief Cook 300,00 USD 3,600,00 USD
4 Barkeepers 400,00 USD 4,800,00 USD
4 Housekeepers 320,00 USD 3,660,00 USD
4 kitchen help 320,00 USD 3,660,00 USD
6 waiters/waitresses 480,00 USD 5,760,00 USD
1 DJ's / Electrician 200,00 USD 2,400,00 USD
6 Gardeners/watchmen 480,00 USD 5,760,00 USD
1 Driver/Guide 100,00 USD 1,200,00 USD

Subtotal 27,180.00 USD

Hiring Employees:
Every monthly payday the business will provide its employees a salary slip and a statement showing how many dollars were deducted from gross
earnings for legal and tax purposes.
6.1 Company Organization
Daud John Kiango will act as managing director to be joined by an investor with experience in the business who can act as a joint managing director
supported by a general manager, this position could also be considered for a foreign investor, other key positions under this leadership would be a
Food and Beverages Manager, Sales, Marketing and Promotions Manager, Accountant, Administration with a senior House Keeper.


104
6.2 Management Team

Biographies of the Management Team

CV- Personal Data: Name: Daud (David) John Kiango
Date of Birth: 10. August 1965
Place of Birth: Dar es Salaam/Tanzania
Nationality: German
Status: Divorced, 3 children
Languages: German, English and Kiswahili
Hobbies: Sport, Travel and Music

Training:
Genesis 2 Church of Health and Healing, Ministry of Health, Dr. of MMS
I.C.C.- International Conference Certificate
07/85 to 06/90 Chris Lane Workshops and D. Burkle and Son. Fine Cabinet Maker, London College of Furniture and Hackney College of Technical
Studies

Business History:
Munich, Germany
28/07/06 to present Self Employed Travel Consultant specializing on Zanzibar and Tanzania in general
01/04/03 to 28/07/06 Self Employed Catering and Online Travel sales.
01/01/03 to 01/04/03 Mobilo- Kellner and Butler- Service
11/01/02 to 01/01/03 Adult Education English Teacher
07/01 to 12/01 Yorma's AG Catering
04/01 to 07/01 Egypt Air Ticketing & Sales Agent
06/00 to 03/01 Obermller& Partner Craftsman
07/92 to 05/00 Exotic Promotions Tourism/Hotel Management, Events, Dar-es-Salaam & Zanzibar, Tanzania
Managed the XTC Sound System, founded the Tarumbeta Club, Stone Town, Zanzibar.

06/90 to 07/92 D. Burkle & Son Craftman, London, United Kingdom.
07/85 to 06/90 Christopher Lane Workshops, Apprenticeship in Woodwork.

Schooling: Sibford Secondary School, Banbury, Oxfordshire,
ALevels; Fine Woodworking, Maths, Physics, Geography
09/82 to 07/85 General Certificate of Secondary Education (G.C.S.E)
OLevels; Maths, Physics, Geography, Fine Woodworking, Chemistry, Technical Drawing, English and German
09/79 to 07/82 General Certificate of Secondary Education (G.C.S.E)
Other Special Talents: Windows 95, 98, 2000, XP Professional, Webmaster


105
Positions will be filled by qualified staff, post graduates and people with master degrees in key positions.

Officers and Key Employees Age % of Ownership
Managing Director 46 85
General Manager - 0
Food and Beverages Manager - 0
Sales & Marketing, Promotional Manager - 0
Administration - 0
Accountant - 0
Head House Keeper 50 0
Corporate Attorney 50 0
6.3 Management Structure and Style

The Managing Direct is myself, Daud John Kiango, could be joined by a investor who has experience in the business, a foreign investor could also
take up the position of General Manager. Either of my elder children could take up a position in Sales, Marketing and Promoti ons and we already
have an experienced house keeper in mind, Ms. Naseem Bokhari who speaks English, Kiswahili, Hindu and local Tanzania tribal languages, has
Managing Director- Daud J. Kiango possibly with a foreign investor
1 General Manager or a foreign investor
1 Food and
Beverages
3 Sales,
Marketing,
Promotional
Managers
1 Administration 1 Accountant 1 House Keeper
1 Head Cook
4 Kitchen Help
6 Waiters /
Waitresses
4 Bar Keepers
1 Sport Instructor
1 DJ/Electrician
1 Driver/Guide
ORGANIZATIONAL CHART
6 Watchman /
Gardeners
4 Housekeepers


106
previously worked with me in a number of positions also has a full drivers license, two watchmen/gardeners are currently already employed, all other
positions are vacant.

Management Style
Our Management style will be based on a democratic style of management putting trust in employees and encourage them to make decisions. We
will delegate to them the authority to do this (empowerment) and listen to their advice. This requires good two-way communication and often involves
democratic discussion groups, which can offer useful suggestions and ideas. Managers must be willing to encourage leadership skills in
subordinates.
The ultimate democratic system occurs when decisions are made based on the majority view of all workers. However, this is not feasible for the
majority of decisions taken by a business- indeed one of the criticisms of this style is that it can take longer to reach a decision.
6.4 Ownership

Authorized shares of common stock at the moment are as follows:

Name # Shares Held % Ownership
Daud Joh Kiango [Founder] 85 85%
Lubayna Kiango [Founder] 5 5%
Nabil Kiango [Founder] 5 5%
Annalisa Kiango [Founder] 5 5%


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6.5 Professional and Advisory Support

Attorney:

Mr. Nassor Khamis Nassor and Associates
Zanzibar, Tanzania
Tel: +255 (0) 777411197

Architects & Planners:

Folkers, van Buitan & Wilks Ltd.,
P.O.Box 14174, NL - 3508 SG Utrecht, Holland.

Banker:

Barclays Bank Zanzibar Branch
P.O. Box 4810
ZSTC Building Stone Town
Zanzibar Tanzania

Accountants, Auditors, Tax Consultants:

Imara Consultants,
P.O. Box 1941,
Mnazi Mmoja,
Vuga Road,
Zanzibar.
Tel: +255 24 2235303
Email: imara@zanzinet.com

Insurance Agent:

Lloyds of London
Zanzibar Insurance Cooperation

Website Servers:

Netestate GmbH http://www.netestate.de


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6.6 Board of Advisors / Directors

The Board of Advisors or Directors will include myself with my children who are shareholders to be joined by investors and financers including our
company lawyers and tax advisors/consultants.

Company Lawyers- Mr. Nassor Khamis Nassor and Associates- Zanzibar

Tax Advisor Mr. Seif Issa of Imara Consultants - Zanzibar

These two Board advisors shall be paid a yearly thank you package of $500 to $1000.- USD.


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7. Operations

Employees must inspect and approve their work and indicate their approval or rejection of the product we are offering.

Our leased land will provide over 20 acres of hotel / resort development space, if sales growth increases will can innovate and expand on our
present premises in the next 5 to 7 years.

Equipment and product is bought and our Chief Financial Officer will track inventory electronically, from beginning to end.
Fresh market produce will be bought almost daily from the market with dry stock once a week being the norm or as required. Bars and
kitchens/bakery will prepare and produce as when it is needed depending on demand.
7.1 Operations Strategy
7.2 Scope of Operations
It makes sense for our business to buy our stock for restaurants and bars on a daily basis for freshness of product and produce the finish product
directly in house.
Our relationship with vendors, suppliers, partners, and associates shall be very casual, we usually close up deals with a simple handshake as wit
most deals involving think contracts of agreements more then often end in disaster, we believe our business operates on a basis of trust and most
players are people we have know for ages.
We shall be looking to hire self-motivated staff with high qualifications and enough experience in our line of business.
7.3 Ongoing Operations
I shall be overseeing all operations from start to finish delegating to in house staff and outside hired help as needed on a daily basis.


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7.4 Location
Zanzibar and Tanzania
Zanzibar and Tanzania are one of the fastest growing Tourist Destinations after South Africa in Sub Saharan Africa.
Research and investigations on the possibilities to set up a country resort resulted in a feasibility study written in close cooperation with the
Zanzibar Investment Promotion Agency. On the basis of the study a plot in Tunguu has been chosen and allocated to the Botanic Country Resort
for development.

Since then the plot has been surveyed, cleared and prepared for
Infrastructural works.

The choice of Tunguu site prevailed over other possible locations because of its excellent accessibility, its central location, present infrastructure and
vegetation.

Tunguu is just 14 km away from the Stone Town with a good tarmac road and within easy access from the main beach resorts on both Zanzibar
south-, east- and west coasts. 70% of all visitors to the Island have to drive past the location. Already electrical power and telephone lines have been
installed.

In the direct vicinity are the new Tanzania Government Parliament Building and Immigration buildings for South Unguja. Other projects within the
proximity include construction of Ministerial Offices, the University of Zanzibar and the Zanzibar International Trade Fair, making the Tunguu area a
very fast developing and prestigious part of the island.

Precipitation and soil conditions favor fast growing and lush vegetation. Development has already begun, and fencing, walls and roads have been
constructed including drainage and sewage.

Abundant sweet water has been sourced through three shallow wells of less than twenty meters depth.


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MAP of Zanzibar showing the location


112
THE BOTANIC COUNTRY RESORT THE SITE. Site layout1


113
Diagonally from south-west to north-east.

Site layout 1 shows the main gate-house and public entrance (water tower1) in the south west corner of this layout.

Taarab Square, a large circular entertainment area is surrounded by an arcade consisting of 9 shops, fitness center, bar, kitchen and music hall.

In the center of the site is the conference center, restaurant, bar and swimming pool area.

Between Taarab Square and the swimming pool area will come the sport facilities (refer to site layout 2) such as golf, tennis, basketball, volleyball,
badminton and childrens adventure playground.

In the center and to the north east of the site is the reception area and a breakfast room surrounded by 10 duplex chalets.

The reception (water tower 2) acts as a land mark and orientation point.

In the south east corner of the site is the workshop area and service entrance, there are 2 service roads and 1guest access road leading from the
workshop to Taarab Square, the swimming pool area and the reception.

The north-western and south-eastern areas are reserved for a spice plantation mixed with indigenous trees and shrubs.

To the north of Taarab Square behind the shops is the beer garden with an already existing bar and restaurant. (Refer to site layout 2)


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Site layout 2
Site layout 2 shows the beer garden, sporting facilities and golf driving range. With 20 acres, there is enough land for future expansion from 10
Duplex chalets to 22 duplex chalets.

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TAARAB SQUARE Site layout 3

Site layout 3 shows Taarab Square, a large circular plaza and core of the entertainment area. The plaza is walled off to the surroundings and
entered through a storied gate-house (water tower 1) consisting of toilets, office and store with large water cisterns on top.


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Around the plaza, clockwise, is the shopping arcade with shops, boutiques, galleries, a coffee bar, beauty salon, pharmacy and an information office.
Further clockwise and opposite the main gate is the fitness center, a storied building consisting of a squash court, fitness center and changing
rooms.

Further clockwise is a bar with an open air grill-type kitchen.
The closing piece of the circle is the large hall with a stage for music and dance, theatre and cinema performances.
This plaza provides enough room for large parties such as concerts, (traditional) weddings, exhibitions and shows.

The storied gate-house (Water Tower 1) can store enough water and is high enough to supply the pressure required for the whole project without
having to use any pumps.

SHOPPING ARCADE

FITNESS CENTER & MUSIC HALL


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MUSIC HALL.
There are basically two types of buildings architecturally discernable. Both types are conceived in local
Materials; mud/lime plastered coral stone, bush-poles structures and thatched roofs.

TAARAB SQUARE.
The entrance and storied buildings make a massive impression with inverted concealed tin roofs behind parapets, the other buildings have light-
weight steep roofs, optimally ventilated and resting on bush-poles porticos.

ARCADE.
For security and functional reasons the cores of certain units, such as the shops, chalets and conference centre are thought in conventional building
techniques.


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CONFERENCE CENTER & SWIMMING POOL AREA


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CONFERENCE CENTER & SWIMMING POOL AREA

Floor plan 1

CONFERENCE CENTRE AND RESTAURANT.

On the other end of the adventure trail along which the sports- and children's playgrounds are arranged the conference centre and restaurant are
reached.

To enter the centre a bridge over the swimming pool has to be crossed.


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The Swimming Pool has to be constructed immediately together with the Gardens surrounding it, the rest of the facility around the pool shall follow in
the future.

On the north-eastern side of the centre the main entrance is situated, which can be reached by car via a separate access road.

The conference centre with assembly hall, offices, administration and bar as well as the restaurant with kitchen and w.cs are arranged around a
patio.

THE RECEPTION.

The access road to the lodge and conference centre ends in a round-about with a reception in the middle.

The reception building with a lobby, desk, office and a general stationary shop also serves as water tower and acts as a land-mark and orientation
point. From the reception the conference centre restaurant and the lodge itself are directly reached.

Food comes from the main restaurant which also caters for lunches and dinners.


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THE RECEPTION Floor plan 2


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DUPLEX CHALETS

Duplex chalets

The duplex chalets are conceived as two intertwined spirals. This arrangement ensures optimal privacy yet secures optimal cross-ventilation.
The duplex chalets are built up (clockwise) of a half-covered terrace which is lifted from the ground, a lofty lounge on the same level, a bedroom on a
4 step higher level overlooking the lounge and finally a bathroom 2-steps lower again.

The plan shown is the standard arrangement, however the same can be easily converted into a luxury suite or a three or even a four bed family unit.
The lodge is situated ample distance away from the entertainment area and shopping arcade to ensure maximum peace and quiet.


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DUPLEX CHALETS Floor plan 3

Safari Houses Private African Paradises

Villas arent just for Italy anymore. A growing number of luxury villa rentals and safari houses have sprung up particularly in South Africa and
Botswana, says Brad Crockett, Kensingtons Senior Africa Expert. They are going to become very popular for families and groups of friends
seeking more exclusive safari experiences.


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DUPLEX CHALETS Site layout 4

This site layout shows the reception, breakfast room and a total of 22 Duplex chalets or 44 rooms with a maximum capacity of 100 + beds. Initial
development targets are 10 duplex chalets with a capacity of 40 to 50 beds. The breakfast room is situated in an open pavilion with a serving desk.

THE WORKSHOP Floor plan 4


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The utilities lie in the workshop which include an office, storage, wash and changing rooms for the staff, toilets, generator room and also serves as a
garage. This is the second main entrance to the site, 2 service roads and 1 access road lead into the property from this gate.


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The 20 acres of land is enough for any future developments. There is enough land around the site for Future expansion. There is no Golf Course on
the Island for example. If the right partners were found in the future to invest with the current sponsors, a professional "golf course" on the Island
would be a goldmine, or perhaps a "casino".

More land has already been acquired directly in front of the plot. On this plot the Staff House has been built and is currently the Country House
which operates with customers already being able to get a bed at the facility.

SPA AND MASSAGE
Beyond the gate is another open area, a public square as a beer-garden, leading to a spice plantation where a Spa and Massage area will be
allocated close to the swimming pools.

Infrastructure
Zanzibar International Airport (ZNZ)
The airport has a 2,462m runway that in 2001 handled 68 342 international passengers in 1 795 movements (42 633 were non-scheduled services).
The domestic passenger services handled 90,910 passengers in 2001 (77 224 passengers in non-scheduled services) by a total of 1,036 aircraft
movements.
The design process for extending the runway to 3 000 m (US$ 2 million investment) and resurfacing the existing runway (US$ 2.4 million) are
expected to be completed by the end of 2004. (World Bank). Civil work is currently taking place.
The terminal building is now being designed so as to separate domestic and international traffic and to plan for an overall upgrading

Our location needs will be met with the acquiring of the 2 parcels of land in Tunguu, Zanzibar, and we are also planning to acquire more adjacent
land next to us if need be, we really have enough as it is.

We will own the land and a land lease is paid to the government on a long term lease.

This area is desirable due to its well developed infrastructure on site and in the whole area, a good tarmac road to the site only 20 minutes drive
from the Stone Town and harbour and within easy access to beach and tour routes, main power line electricity is already available and sweet water
through 3 wells is running, climate and environment is excellent favoring fast growing vegetation, new businesses and institutions, governmental and
private offices are opening up down the road, plenty of labour and raw materials and supplies are available locally and the surrounding areas
population has a bigger mixture of cultures who are more open to modern touristic development projects compared to some other parts of the island,
plentiful of small wildlife and birdlife exists on the plot and we are not restricted to noise levels controls being in a commercial area.

The project will have more than enough space with over 20 acres.

Renovations and upgrades needed are to the managers house and staff accommodation, the entertainment area of hall, stage, bars, restaurants,
workshop and water tower and will cost $278,000.- USD

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Access to buildings are walk in, with plenty of parking, the road is already good and a new dual carriage freeway is planned, the airport is also only
20 minutes away and with over 70% of all visitors to the island having to drive past our location.

It is easily accessible, parking is available and public transportation is available including some street lighting right infront of our access road.

Our daily business hours will be 24HRs a day; perhaps an hour is needed at dawn for cleaning purposes.

Location of the competition is back in the Stone Town 20 minutes away or on beaches, mainly to our south, north and east approximately 45 minutes
away or more.
7.5 Personnel

Number of employees, 5 managers and approximately 31 employees.

Our employees will be full-time on one year contracts renewable at the end of each season complimented by part-time help when then need arises.

The business will use part-time help to meet increases in demand.

All labor will have a 3 month probation period, (skilled, unskilled, and professional) will have to speak perfect English and have a minimum of 2 to 3
languages.

We shall pay salaries.

Benefits to our staff will include 1 months holiday per year, accommodation with water and electricity, free meals and medical support including
transport where necessary.

People we need are available. We can train people for both operations and management, costs would be low.
7.6 Production
Our products/services are produced on location by our food and beverages department, travel services are offered by our sales, marketing and
promotional team with the assistance of the director and managing directors.
Quality control shall be overseen in all departments and a feedback request will be sent to clients for further improvements of our products and
services.
Customer service will be fast and reliable; our hotlines will be open 24HRS a day, with access to a duty manager at all times.

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7.7 Operations Expenses
Travel can be perhaps kept at a minimum if there is enough local clientele and we shall concentrate more with the local market and neighboring
countries.
Maintenance and repair should be minimum in the first one or 2 years, we have an in house workshop to take care of most repairs and maintenance.
Equipment shall be mainly owned, nothing planned to be leased unless we find that beneficial in the future.
Rent for the land lease is fixed.
Advertising and Promotion will change and can be streamlined further to cut expenses depending on volume of trade we experience.
Supplies are based on Zanzibar suppliers we could go further to Dar es Salaam and have cheaper supplies being brought over weekly in the future
with supplies coming from different destinations.
Utilities section will help us keep operational costs down if we can handle all our needs within our plot.
Packaging and Shipping would be done almost in one go using a large container with equipment and machinery to be shipped to the island by ship
and we have a budget of $20,000.- USD for this.
Unrecoverable receivables should be at a minimum as we are dealing in a cash business with payment in advance being the norm.
Professional services will be kept at a minimum and quite a lot of advice can be got for free from e3lders and others on the island.
Insurance will be kept at a minimum, you usually pay 10% of the value that you are insuring say with the Zanzibar Insurance Corporation.
Loan Payments will be made directly to our local bank that will be handling our accounts and seeing that all loans are paid back further as per
agreement
Depreciation of our fixed asset should be at a minimum than shown, after all land is going up in value on the island and this will only increase with
time.
Overhead $63,560.- USD = Number of Employees 35 x Expense per Employee $1816


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Cost Controls

Inventory, stock checks will take place daily almost and what is replaced will be equivalent to what has been sold so the bars are always up to stock
according to what is being sold.

Food and beverage stock checks will take place daily almost and what is replaced will be equivalent to what has been sold so the bars are always
up to stock according to what is being sold, in house training will take part for staff handling stock and cash.

Administrative and Financial Controls

We shall be using QUICKBOOKS business accounting software to help us save time and make money.
7.8 Legal Environment
Licensing and permits are done immediately upon request through the Zanzibar Commission of Tourism, Ministry of Culture and other related offices
such as Labor, Immigration under the umbrella of the Zanzibar Investment Promotion Agency.
7.9 Inventory
We expect to have an inventory worth $20,000.- USD which would be replaced according to need once a week and in between even daily for fresh
groceries we expect to be replenishing this inventory at a rate of $5000.- USD per months upwards as we go into the second year of business.
Season buildups would be handled naturally as we would always be replacing stocks to our starting levels and this would not be a problem, te larger
the sales the week before the equivalent missing stock would be immediately replaced.
7.10 Suppliers

There are commercial poultry rearing, fishing and farming activities in the district initiated by local residents with whom supply agreements can be
reached. Quite a lot of the produce could also be supplied directly from our own land.

There is adequate land for horticulture and other agricultural activities. For example: livestock and the cultivation of a fresh produce market garden.

There is abundant loose alluvial coral rock in Tunguu, which can be crushed for a variety of building aggregate applications.

We already have 3 wells with a plentiful supply of potable water at shallow depths (approx 20 meters) that can be treated and pumped to elevated
reservoirs for distribution to points of requirement.

There is an existing electricity supply that passes through the property under lease.


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There is a sand quarry in Tunguu and there are engineering contractors and locally available plant and earthmoving equipment for civil works.
Cement is transported from Tanga on the Mainland.

With suppliers no concrete contracts need to be signed as on the island there are many individuals acting as suppliers.

Safari and Car Hire in Tanzania offered through working partners we currently work with include:

Richard Kilonzo, World Tours and Safaris
Avocet Safaris
Kiango Tanzania Adventure Safaris- Our Affiliate on the mainland

In Dar es Salaam:
Waterbuck Safaris
Green Tours and Safaris
Sams Car Hire- Agnella

Just to mention a few.
Adventure Camps of Tanzania Rates 2011-2012

http://www.safaritanzania.org/Adventure%20Camps/Adventure_Camps_Agents_Rates_2011_2012_issued_20100409.doc
7.11 Credit Policies

We shall not be extending any type of credit; our business is a strictly cash/cash business.
Most local bars already have this policy in place all over Tanzania, you pay for a service or goods and upon production of the payment receipt are
services and goods delivered.

Managing your Accounts Receivable

We only accept payment in advance for all of our services and goods, most hotels on the island and in Tanzania expect a 30% deposit payment to
secure services and goods wit payment 1 month in advance before guest arrival.

Managing your Accounts Payable

We pay in advance for all goods and services from third parties.

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8. Financial

8.1 Start-up Funds

LOAN REQUEST- Botanic Sport and Entertainment Resort

Loan Request

Amount Requested 850,000.00 USD
Owners Investment 1,203,440.00 USD
Other Investors 850,000.00 USD

Total 2,903,440.00 USD

Use of Funds

Total 2,903,440.00 USD

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1.7 Exit Strategy

Loan Repayment:

Period: 10 Years
Collateral:

Total 3,530,740.00 USD


A management buyout


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USE OF FUNDS BREAKDOWN

Buying the Business/Project 1,500,000.00

Building & Construction

New Buildings:
Music Hall 30,000.00
10 Bungalows, 20 Rooms 200,000.00
Squash Court, Changing Rooms & Fitness Center 60,000.00
Reception and Water Tower 40,000.00
Golf Range 40,000.00
2 Tennis Courts 20,000.00
Swimming Pool 30,000.00
1 Basket Ball / Volley Ball / Netball Court 10,000.00
Breakfast Hut Area 5,000.00
Spa and Massage Area 10,000.00
Water Fountain in Taarab Square 10,000.00

Subtotal 455,000.00

Old Buildings For Renovations and Completing
Staff Housing 23 Rooms 50,000.00
3 Restaurant, 30,000.00
3 Kitchens, 20,000.00
Beer Garden + DJ Hut 8,000.00
Taarab Square (Entertainment Area) 5.000.00
50 Shops 75,000.00
Water Tower and Water System 35.000.00
Office and Managers Room 10,000.00
Conference Room 15,000.00
Workshop 30,000.00

Subtotal 278,000.00

Infrastructure and Landscaping: 40,000.00
Foot Paths, Fencing, Walls, Benches, askari (watchman) huts,
roads, electricity, drainage and sewage, water and wells

Inventory


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Entertainment, Restaurant, Kitchen & Bar

60 Dinning Tables 15.000.00
240 Dinning Chairs 16.800.00
1 Counter Assembly 500.00
50 Bar Stools 600.00
12 Deep Freezers 5000.00
15 Fridges 5000.00
3 Cookers/Ovens 2000.00
Cooking Machines & Utensils 10.000.00
Crepe Stand and Utensils 10,000.00
Hot / Cold Display Appliances 8.000.00
Furnishings 1500.00
1 Scale 150.00
6 Microwave 1800.00
Band/Disco/ Conference Room Equipment 40.000.00
1 Billiards-Table 2.000.00
1 Table Foot Ball 800.00
1 Table Tennis 900.00
1 Air-Hockey Table 500.00
1 Darts 200.00
10 Flat Screen TVs 10,000.00

Subtotal 130,750.00

Swimming Pool Area:

Deck Chairs and Beds 4,000.00
20 Sun Umbrellas 10,000.00

Subtotal 14,000.00

Sub Total 144,750.00 USD

Machinery and Equipment, Tools


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2 Computer & Monitor 2000.00
Catalogue/Brochure Stickers
A4 x 3000, Posters A3 x 5000, Flyers A5 x 2000 10,000.00
1 Scanner 400.00
Internet Installation 2000.00
Cable und accessories wireless 400.00
1 Printer 500.00
2 Cell Phones 400.00
1 Fax/Telephone with answering machine 400.00
1 Laptop 1000.00
1 Digital Camera 500.00
1 Video Digital Camera 700.00
5 Water Pumps 1400.00
1 Power Transformer for electricity 30,000.00
CCTV System 10,000.00
Fire Alarm System 5,000.00

Subtotal 84,700.00

Furniture and Fixtures

Furnishings/Guest Rooms 10,000.00
20 Sofa Sets 20,000.00
30 Beds 9,000.00
10 Coffee Tables 3,000.00
10 Long Mirrors 2,000.00
10 Tables 4,000.00
10 Chairs 1,000.00
30 Mattresses 12,000.00
80 Pillows 1,600.00
60 Bed Covers 900.00
60 Bed Sheets 900.00
30 Blankets 600.00
30 Mosquito Nets 600.00
100 Towel Sets 1,500.00
Hotel Telephone System 7,000.00

Subtotal 74,100.00


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Furnishings/Staff 1000.00
9 Beds 900.00
9 Tables 180.00
9 Mattresses 900.00
9 Pillows 60.00
9 Blankets 90.00
Workers Clothing 1000.00

Subtotal 4,340.00

Office Equipment and Computer
2 Office Tables 500.00
2 Office Stools 150.00
6 Visitor Stools 400.00
2 File Cabinets 500.00
Accessories 300.00
Office Safe 500.00
Home Page Registration and Hosting 1,500.00

Subtotal 3,850.00




Start-up Costs:


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Resident Permits 3000.00
Registry of Companies Registration 1000.00
Licenses 4.000.00
Entertainment 500.00
Bar/Restaurant 500.00
Travel Agent/Tour Operator Bookings and Reservation 1000.00
Rooms 500.00
Sport 500.00
Tax Advisor 2.000.00
Training Costs 1000.00
Emergency Fund 10.000.00
Notar (Trade Mark/Copyright Registration) 2.000.00
Out of pocket expenses 10.000.00
Travel 10,000.00


Motor Vehicles:
2 Minibus 20.000.00
1 MicroTruck 13,000.00
3 Suzuki Vitara 15,000.00
2 Pick Up 18,000.00
1 Land Cruiser 30,000.00

Subtotal 96,000.00


-Contingency Reserve 10%) 25,000.00 USD


Total Investment Required 2,903,440.00 USD

We are looking for a long term loan / Investor of 10 years or more.

I am investing.


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Zanzibar Magic Company Limited can return the Investment of this project within 10 business years or less through: profit dividends, selling the
company or through selling shares.

Imported equipments, machines, material and vehicles required for the project are free of import taxes only a 5% wharfage and handling fee is
imposed.
8.2 Financial History and Analysis
This is a new business / company.
8.3 Current Financial Position

Zanzibar Magic Company Limited is currently in a take over bid for the liquidated and wound up company Exotic Promotions Company Limited.

$300,000.- USD is required immediately to finalize the securing of the take over of Exotic Promotions Company Limited and pay all its
outstanding debts whose total current assets and liabilities are set at $1,200,000- USD, which includes a separate managers house on an adjacent
plot also to be acquired and included in this total sum.

$1,200,000.- USD is our contribution to the project, we also bring in further assets in the form of machinery and equipment including motor vehicles,
furniture and fixtures.

Mr. Daud John Kiango was a director in the liquidated Exotic Promotions Company Limited and is part owner of the managers house on the
adjacent managers house plot and is in a legal position to pay of his ex partner off including remaining liabilities of the dissolved and liquidated
company if the initial requested funds of $300,000.- USD is raised as soon as possible, leaving Mr. Daud John Kiango as the sole owner of all
assets belonging to the taken over company and the adjacent managers house in Tunguu, Zanzibar, paving the way open to implement the project
and get it to operational status immediately.


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Debt Schedule
Debt Schedule Table of new loans and investment expected to be raised
To Whom
Payable
Original
Amt.
Original
Date
Present
Balance
Rate of
Interest
Maturity
Date
Monthly
Payment
Security Current/Past
Due
Investors/Bankers
Loan

850,000
2012

850,000
5% 2021 9,015
Collateral
& Equity
in Real
Estate
New Loan
Investing Partner

850,000
2012

850,000
Will be
paying
Dividends
Earliest
repayment
from 2015
onwards
to 2021
--
Collateral
& Equity
in Real
Estate
New
Investment

8.4 Operating Forecast
Copy of Cashflow Forecast_Monthly.xls
http://www.botanicresortzanzibar.com/images/copy%20of%20cashflow%20forecast_monthly.xls
8.5 Break-Even Analysis

Breakeven Point

Formula:

==========================================


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8.6 Balance Sheet
Copy of Balance Sheet.xls
http://www.botanicresortzanzibar.com/images/copy%20of%20balance%20sheet.xls
8.7 Income Statement
Income Operating Statement.xlsx
http://www.botanicresortzanzibar.com/images/income%20-%20operating%20statement.xls

Personal Financial Statement

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Daud John Kiango-

Date of Birth 10.08.1965

Botanic Country Resort, P. O. Box 4084, Zanzibar, Tanzania

Tel: +255 777 844417 info@zanzibarmagic.com

Assets & Liabilities
Assets
Cash 10,000.00 USD
Real Estate, equity value 1,500,000.00 USD
Automobiles, equity value 20,000.00 USD
Other Property 100,000.00 USD
Other Assets 20,000.00 USD
Total 1,650,000.00 USD

Liabilities
Other Accounts and bills due 15,000.00 USD
Total 15,000.00 USD
Net Worth 1,435,000.00 USD
Total Liabilities + Net Worth 1,650,000.00 USD

Income & Expenses
Annual Income:
Salary, Bonuses, and Commissions 24,000.00 USD

Annual Expenses:
Mortgage/Rental Payment $3,000.00 USD
Notes Payable $210,000.00 USD
Contingent Liabilities $0 USD
Total $213,000.00 USD

I hereby certify this statement is true and accurate. I authorize any inquiries necessary to verify the statements accuracy.

______________________(Daud John Kiango) Date: _______________________


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8.8 Cash Flow

Cash Flow Statement Monthly Year 1
Cash Flow Statement Quarterly Year 2
Copy of Cashflow Forecast_Quarterly.xls
http://www.botanicresortzanzibar.com/images/copy%20of%20cashflow%20forecast_quarterly.xls
Personnel/ Staff costs and Fixed Costs shall be smaller in the first business year as costs for the first three to six month will be relatively lower.

Cash Flow Statement Yearly 3 to 10
Copy of Cashflow Forecast_Yearly.xls
http://www.botanicresortzanzibar.com/images/copy%20of%20cashflow%20forecast_yearly.xls
We would aim to get a loan of half of the amount requested $850,000.- USD and the remaining capital $850,000.- USD would be from an investor and the
owner of the business.


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9. Offering Funding Request
We are requesting a total of $1,700,000.- USD to finance our project from a mixture of finance from investors and bankers.
We would aim to get a loan for half of the amount requested $850,000.- USD on a long term loan, with repayment being up to 10 years for the full
principal payment and interest, with as low interest rates as possible.
The remaining required capital of $850,000.- USD or preferably more we hope to raise in the form of a income note which pays dividends to an
investor/partner.
Investors will have their principal loans and invested capital either paid back after a period of 3 years with interests and dividends paid or as agreed
by mutual consent with the company at a later day, these investments and loans from investors could be turned into full company shares for those
interested in supporting the project further and being involved, if both parties the investor and the company have found themselves to be compatible
and agreeable after a minimum of 3 years, the doors are open to full partnership, otherwise a repayment plan is settled if the investor or the
company wishes to exist from the income note agreement.
Dividends
Paid to income note holders. They represent the income note holder's portion of the corporation's profits.

Ordinary Dividends
The most common type of distribution.
Paid out of the EARNINGS and PROFITS.
Taxable as ORDINARY INCOME unless they are QUALIFIED dividends.

Qualified Dividends
Dividends received on shares of common stock held by the taxpayer for more than 60 days of the 121-day period beginning 60 days before the ex-
dividend date (more than 90 days of the 181-day period beginning 90 days before the ex-dividend date for preferred stock).
These dividends qualify for LONG-TERM CAPITAL GAIN treatment.

Public Income Notes - PINES
An unsecured, unsubordinated debenture issued by a public company. PINES trade on a stock exchange but can also bear interest.
These types of securities are in that gray area between bonds and preferred stock.

INCOME NOTE STRUCTURE- The advantages of income notes to the issuers are that the interest is deductible to the corporation (unlike
dividends which are not deductible).

The advantages to the investor are first, that the bonds are 'safer' than preferred stocks (in other words, if the corporation goes out of business, the
bonds are generally paid off first before the preferred or common stock). Second, the income notes (with the exception of the perpetual debt
bonds) have some limited protection against inflation versus preferred stocks in that if interest rates go up after purchasing them, their value will
drop, however the par value (usually $25) will be paid back at maturity. Whereas, preferred have no maturity. The third benefit is the small


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denomination, especially when looking at a $2,500 IRA investment. A fourth benefit is that since they are traded like stocks, there is more liquidity
than buying or selling a $5,000 bond. However, these are still very illiquid investments.

Interest
Money paid or received for the USE of money.
Taxable in the year RECEIVED or credited to an account.
The gain (ROI).
Return on Investment (ROI)
Amount Invested $2,050,000.- USD
Start Date 01 November 2012
Amount Returned $4,339,601.- USD
End Date 31 October 2021
Gain or Loss on Investment ($) $2,289,601
Investment Term (Years) 10
Return on Investment (%) 111.7%
Simple Annualized ROI (%) 10.4%
9.1 Offer

We are offering 68,000 mini shares in the form of an income note at $25.- USD per share.

Minimum 100 shares per application at $2500.- USD only.

Initial public offer runs from now to Nov 31
st
2012.

We are offering up to $1,700,000.- USD worth of the company 58% of the company as 56,000 mini shares in the form of income notes which can
be bought.

50% of this would pay interest at say 5% with the remaining 50% or more paying dividends or as agreed between the parties involved.


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We are looking for a total of $1,700,000.- USD, half of this, $850,000.- USD we expect to raise a loan which we pay interest on and the remain half
$850,000.- USD or even more we expect to raise from investors which pays dividends at the end of the year.

We are prepared to give away as much as 80% of the company in the future once we have worked with investors who can become potential
partners after a number of years, lets say after 3 years we can review our relationship to see if we are compatible and can then with mutual consent
decide to turn these income notes into full time shares in the company or full repayment of principal with interest or dividends as originally agreed
on.

We are looking for the lowest interest rates possible, 5% or lower.
The deal we are offering is fair to all parties concerned and is supported by facts, we are bringing a completely developed project with a great
concept on a silver plate for your consideration which offers a good and safe rate of return. Not only is the Botanic Country Resort up for
investment, we are bringing in ZanzibarMagic.com which already turns over a reasonable sales and the XTC Sound System back, a legend sound
system run by myself over 20 years ago and still famous.
We shall have the following collateral for a loan:

Repayment:

Period: 10 Years

Collateral:

Total 3,530,740.00 USD


A management buyout

The anticipated return on investment for investors or bankers offering a $850,000.- USD to be paid dividends is as follows:


146
Start Date 01 November 2012

The anticipated return on investment for investors/bankers offering a $850,000.- USD loan would be as follows:

Loan Summary

Monthly Principal & Interest $9,015.57
Total of 120 Payments $1,081,868.26
Total Interest Paid $231,868.26
Pay-off Date May, 2022


I am investing.



147

9.2 Capital Requirements
We are proposing to implement the project to completion and operational stages by using a total of $2,900,000.- USD
We have already invested $170000.- USD in the business and are looking for an additional $1,200,000.- USD from private investors, individuals and
from banks in the form of loans or partners in the business.
We are sitting on a gold mine and need funds to complete building and renovating setting up operations for the implementation of the Botanic
Country Resort. All parties will benefit from the opportunity as it is going to be a once in a life time chance to complete and manage this profitable
venture to be.
Loans will start to be paid back immediately as operations of the Botanic Country Resort will start immediately at grass roots level on the site with
fast upgrades and we should be in full business swing by the end of this year already bringing in well needed sales, as a matter of fact our internet
activities and websites already bring in profits ever month.
Sales of accommodation for next year can already be made and for other services, these can already operate immediately and bring in capital such
as bar and restaurant, shop rentals, 1 bar is already renting out at the back, the Kipepeo Bar, entertainment with live acts and discotheque, tours
and excursions, the Botanic Country House can currently already accommodate guests, car hire travel and safari business is operating on a low key
level with private consultancies.
Investors can already start to opt out after 2 years of operations once the business is into its third year and standing, being paid out over a period of
a year or two and upon mutual understanding and agreement.
We already have 2 large plots over 20 acres in a prestigious position on the island at Tunguu next to the Tanzania Vice Presidents offices and
residence including 2 universities and more to come and already existing neighbors such as the Regional Commissions Office including Tanzania
House of Parliament Branch Offices with all infrastructure and semi developed ready to take off with operations as collateral.
3 cars, equipment and machinery, other inventory from freezers to chip cookers. Furniture and fixtures.
Can also obtain in case of emergency offer capital from private property in Dar es Salaam, a private flat can fetch very good key money, have also a
20% share in a house in Magomeni Mikumi and a parcel of land along Morogoro Road in Mbezi area including other assets.


148
9.3 Risk/Opportunity

Our pricing will be below the norm on the island for a quality resort like ours, we can cater to the masses due to the location and space we have and
all licensing requirements are meet without much completion for 14 km or longer in either direction.

Our product is one not matched as we are the only ones with a unique entertainment facility and golf range and alternative sport not catered for on
the island like squash; we have minimized the risk by establishing a missing part of tourism activities on the island.

Management risks are overcome by finding a strong and experience partner as an investor who also plays a part in management including hiring
qualified experienced staff in all positions and personally overseeing the training and quality of services to be offered.

The product/service truly fills an unmet need in the marketplace.

Having the opportunity to be located where we are, the timing factor of it, with other developments in the area and on the island in general with no
real direct competition will make us fit nicely into the complete diverse master plan for tourism on Zanzibar Island.

We have tried to consider all the possible risks involved and our business does have a contingency plan in place for all of the risks.

The whole concept is unique, who else has thought of developing the countryside of Zanzibar among small wildlife and in a forest with an
entertainment and sport facility for local and domestic tourism alike offering a wide range of services is a once in a life time chance.

The financial risks for our business is a delay in finding finance to secure the take over and become operational, otherwise enough collateral and
investment sense is available within our management team to cover all investors and bankers investment and loan.

These risks are minimized due to the fact that we are positioning ourselves to fill a gap which is only going to increase and the opportunity is there to
be flexible enough to survive through any worst-case scenario.

We are setting up our business not only to rely on the International Market which fluctuates seasonally, but we are going to build a strong local
domestic base of clientele from within Zanzibar and Tanzania Mainland but also from neighboring countries and from within Africa itself, minimizing
the risk on dependence on the International tourist, but instead will concentrate on local expatriates within the country and within Africa itself.
9.4 Valuation of Business
Liquidation Report for the year ending 31
st
Dec 2010 for Exotic Promotions Company Limited by Imara Consultants, P. O. Box 1941, Zanzibar,
notes that the company already has a realizable value of over $450,000.- USD, add a total of $300,000.- USD for the adjacent managers house on a
separate plot which is also been acquired by the company and also has over 30 shop spaces being developed with extra childrens pools we have a
total of of $750,000.- USD, add value for the land at the going rate in the area of $25,000.- USD x 22 acres which would be acquired in total =
$550,000.- USD bringing the total up to $1,300,000.- USD, this is before adding other assets we already have such as machinery and equipment,
cars and assets such as architectural drawings, let alone the current development I have initiated on my own since late last year.


149
Further more criteria such as a future business value due to the location and richness of the land with sweet water and lush vegetation including
small wildlife unmatched by the competitors, other professional criteria have not been considered and would bring the value of the company up to
well over a $1,500,000.- USD in its current state.
9.5 Exit Strategy
Should investors decide or need to cash out (end their involvement and recoup their investment), this can involve, for example, selling the business,
merging, a buyout by a partner/shareholder, getting acquired or issuing an initial public offering (IPO).
Repayment:

Period: 10 Years

Loan Repayment:

Period: 10 Years
Collateral:

Total 3,530,740.00 USD


A management buyout


150
10. Refining the Plan
10.1 For Raising Capital
Will are looking at a total of $1,700,000 USD as a loan or from an investor.
Funds will be used for takeover of the project, implementation of works from buildings to machinery, equipment, furniture, fixtures and infrastructure
shall be completed.
The company will be in a position with enough capital to implement its plans and realize its goals in a very short time span.
We are requesting a 10 year repayment term on loans with as little interest as possible, 5% interest rates are what we are looking for.
Collateral offered is the land leases and the already developed property including machinery and equipment including cars and there is no existing
liens against the collateral. Zanzibar Magic Company Limited has no outstanding debts.
Funds needed in the short term are $300,000.- USD
Funds needed in less than 6 months to 1 and half years $1,400,000 USD
The company will use funds to immediately secure the take over of Exotic Promotions Company Limited and what this will accomplish for growth
Estimated return on investment is as follows.
The gain (ROI).
Start Date 01 Novemer 2012


151

Exit strategy for investors will obviously by a buy back as the simplest and easiest desired.
Percent of ownership you will give up to investors will vary perhaps up to 80% in the future.
Conditions we will accept are low interest rates.
Financial reporting to be provided
Involvement of investors on the Board and in management is acceptable
10.2 Refine According to Type of Business
Prices, methods used to set prices will be determined by supply costs and competitors rates, on average we intend to have more competitive rates.


152
11. Appendix
Start-up Budget
Loan Request

Amount Requested 850,000.00 USD
Owners Investment 1,203,440.00 USD
Other Investors 850,000.00 USD

Total 2,903,440.00 USD

Use of Funds

Total 2,903,440.00 USD


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USE OF FUNDS BREAKDOWN

Buying the Business/Project 1,500,000.00

Building & Construction

New Buildings:
Music Hall 30,000.00
10 Bungalows, 20 Rooms 200,000.00
Squash Court, Changing Rooms & Fitness Center 60,000.00
Reception and Water Tower 40,000.00
Golf Range 40,000.00
2 Tennis Courts 20,000.00
Swimming Pool 30,000.00
1 Basket Ball / Volley Ball / Netball Court 10,000.00
Breakfast Hut Area 5,000.00
Spa and Massage Area 10,000.00
Water Fountain in Taarab Square 10,000.00

Subtotal 455,000.00

Old Buildings For Renovations and Completing
Staff Housing 23 Rooms 50,000.00
3 Restaurant, 30,000.00
3 Kitchens, 20,000.00
Beer Garden + DJ Hut 8,000.00
Taarab Square (Entertainment Area) 5.000.00
50 Shops 75,000.00
Water Tower and Water System 35.000.00
Office and Managers Room 10,000.00
Conference Room 15,000.00
Workshop 30,000.00

Subtotal 278,000.00

Infrastructure and Landscaping: 40,000.00
Foot Paths, Fencing, Walls, Benches, askari (watchman) huts,
roads, electricity, drainage and sewage, water and wells

Inventory

Entertainment, Restaurant, Kitchen & Bar


154

60 Dinning Tables 15.000.00
240 Dinning Chairs 16.800.00
1 Counter Assembly 500.00
50 Bar Stools 600.00
12 Deep Freezers 5000.00
15 Fridges 5000.00
3 Cookers/Ovens 2000.00
Cooking Machines & Utensils 10.000.00
Crepe Stand and Utensils 10,000.00
Hot / Cold Display Appliances 8.000.00
Furnishings 1500.00
1 Scale 150.00
6 Microwave 1800.00
Band/Disco/ Conference Room Equipment 40.000.00
1 Billiards-Table 2.000.00
1 Table Foot Ball 800.00
1 Table Tennis 900.00
1 Air-Hockey Table 500.00
1 Darts 200.00

Subtotal 130,750.00

Swimming Pool Area:

Deck Chairs and Beds 4,000.00
20 Sun Umbrellas 10,000.00

Subtotal 14,000.00


Machinery and Equipment, Tools

2 Computer & Monitor 2000.00
Catalogue/Brochure Stickers
A4 x 3000, Posters A3 x 5000, Flyers A5 x 2000 10,000.00
1 Scanner 400.00
Internet Installation 2000.00
Cable und accessories wireless 400.00
1 Printer 500.00
2 Cell Phones 400.00


155
1 Fax/Telephone with answering machine 400.00
1 Laptop 1000.00
1 Digital Camera 500.00
1 Video Digital Camera 700.00
5 Water Pumps 1400.00
1 Power Transformer for electricity 30,000.00
CCTV System 10,000.00
Fire Alarm System 5,000.00

Subtotal 84,700.00

Furniture and Fixtures

Furnishings/Guest Rooms 10,000.00
20 Sofa Sets 20,000.00
30 Beds 9,000.00
10 Coffee Tables 3,000.00
10 Long Mirrors 2,000.00
10 Tables 4,000.00
10 Chairs 1,000.00
30 Mattresses 12,000.00
80 Pillows 1,600.00
60 Bed Covers 900.00
30 Blankets 600.00
100 Towel Sets 1,500.00
Hotel Telephone System 7,000.00

Subtotal 74,100.00

Furnishings/Staff 1000.00
9 Beds 900.00
9 Tables 180.00
9 Mattresses 900.00
9 Pillows 60.00
9 Blankets 90.00
Workers Clothing 1000.00

Subtotal 4,340.00


156

Office Equipment and Computer
2 Office Tables 500.00
2 Office Stools 150.00
6 Visitor Stools 400.00
2 File Cabinets 500.00
Accessories 300.00
Office Safe 500.00
Home Page Registration and Hosting 1,500.00

Subtotal 3,850.00




Start-up Costs:

Resident Permits 3000.00
Registry of Companies Registration 1000.00
Licenses 4.000.00
Entertainment 500.00
Bar/Restaurant 500.00
Travel Agent/Tour Operator Bookings and Reservation 1000.00
Rooms 500.00
Sport 500.00
Tax Advisor 2.000.00
Training Costs 1000.00
Emergency Fund 10.000.00
Notar (Trade Mark/Copyright Registration) 2.000.00
Out of pocket expenses 10.000.00
Travel 10,000.00


Motor Vehicles:
2 Minibus 20.000.00
1 MicroTruck 13,000.00
3 Suzuki Vitara 15,000.00
2 Pick Up 18,000.00


157
1 Land Cruiser 30,000.00

Subtotal 96,000.00


-Contingency Reserve 10%) 25,000.00 USD


Total Investment Required 2,903,440.00 USD


I am investing.


Imported equipments, machines, material and vehicles required for the project are free of import taxes only a 5% wharfage and handling fee is
imposed.

Financial History and Ratios


158
Ratios

Asset Management Ratios

Accounts Receivable Turnover

Formula:
(Accounts Receivable $520,409 x 365 days) / Net Sales Figure $520,409 = Days to collect bills 365

Inventory Turnover

Formula:
(Inventory Figure $61,000 x 365 days) / Cost of Goods Sold $56,000 = Days to turnover or sell of the inventory 397

Liquidity Ratios
How "cash rich" is a company?
Liquidity ratios show a company's ability to turn an asset into cash.
Working Capital

Formula:
Current Assets $3,472,313 - Current Liabilities $1,116,128 = Working Capital $2,356,185.-USD

Quick Test or Acid Test Ratio

Formula:
(Total Current Assets $3,472,313 Inventory $66,000) / Total Current Liabilities $1,116,128 = How many times assets cover
liabilities 3.05

Current Ratio

Formula:
Total Current Assets $3,472,313 / Total Current Liabilities $1,116,128 = Ability to pay short term liabilities 3.11

Debt Management Ratios

Leverage (or Debt to Worth) Ratio

Formula:


159
Total Liabilities $1,116,128 / Total Capital $3,472,313 = The amount by which the company is leveraged 3.21

Accounts Payable Turnover

Formula:
Accounts Payable $0 / Purchases $61,000 = Amount of days in which accounts payable are paid 0

Profitability Ratios

Profit Margin or Sales

Formula:
Total Liabilities $1,116,128 / Total Capital $3,472,313 = The amount by which the company is leveraged 3.21

Cash Flow to Current Maturities (Debt Service) Ratio

Formula:
(Net Profit $295,172 + Depreciation $125,021) / Current Portion of Long Term Debt $38,800 = Dollar amount available to make
payments on debts $10.-USD
Financial Projections
Break-Even Analysis
Breakeven Point

Formula:
==========================================

Balance sheet


160
Copy of Balance Sheet.xls
http://www.botanicresortzanzibar.com/images/copy%20of%20balance%20sheet.xls
Income statement
Income Statement Operating Statement.xlsx
http://www.botanicresortzanzibar.com/images/income%20-%20operating%20statement.xls
Sales Forecast
Cash flow statement
Copy of Cashflow Forecast_Quarterly.xls
http://www.botanicresortzanzibar.com/images/copy%20of%20cashflow%20forecast_quarterly.xls
Copy of Cashflow Forecast_Yearly.xls
http://www.botanicresortzanzibar.com/images/copy%20of%20cashflow%20forecast_yearly.xls
Copy of Advertising Expenses
Copy of Advertising Expenses.xls
http://www.botanicresortzanzibar.com/images/copy%20of%20advertising%20expenses.xls

Copy Of Sales Projections



161
Product literature and brochures
Full Report of World Travel 2010-2011
http://www.itb-kongress.de/media/itbk/itbk_media/itbk_pdf/plugin-worldttr_2010_2011.pdf
Full Report of World Travel 2009-2010
http://www.itb-berlin.de/media/itb/itb_media/itb_pdf/worldttr_2010.pdf
Zanzibar Vision 2020
https://www.box.com/shared/f329a079067585fd5d0a
Tanzania Tourism Sector Overview
https://www.box.net/shared/ed9868eabd53bf571715
Tanzania Tourism Sector Overview
https://www.box.net/shared/7bb79ff7744f5e21468f

Tours and Excursions recommended:

Swimming with Dolphins
At 8:30am or better even earlier, south coast dolphin tour a trip to dolphin watching tour, a day trip to Kizimkazi, wonderful you may swim with
hundreds of spinner & bottle-nose dolphins playing off Kizmkazi beach & give you change to experience special natural message in the Indian
Ocean, at 2:30pm driving to jozani forest tour for red Colobus Monkey, natural forest and mangrove forest and the living species of fish neath, and
then transfer to your resort for dinner and overnight.

http://www.zanzibarmagic.com/english2nd/dolphine%20tour.htm

Stone Town Tour.
After breakfast at 9:00am have the stone town tour takes around the historical culture and architectural important town of
Zanzibar with a century historical. It includes a visit to former slave market site, now stands as Anglican church built in 1871, town
market, Visit the Zanzibar Memorial Museum, House of Wonder built in 1883 (Beit-AL-Ajab), old Arab Fort, Palace Museum and end at Old
tortoises. Flanged by an amazing beach of reef sanctuary, the Island is ideal for overnight at your chosen hotel.

http://www.zanzibarmagic.com/english2nd/stone%20town%20tour.htm


162

Safari Blue Experience
Safari Blue Experience Dhow Excursion- whole Day Tour
This morning is an early start as we need to take a road transfer to reach our collection of Swahili Dhows at Fumba - an excellent location
for exploring the wildlife, isolated sandbanks and rugged island scenery of the Menai Bay Conservation Area.

Once we set sail we shall spend the day searching for dolphins, sunbathing, and snorkelling the reefs. We shall have time to walk
through the sand banks at low tide and eat fresh coconut milk, pineapples, from the surrounding areas

Lunch will be a collection of Swahili BBQ dishes and exotic fruits prepared in front of you. Now is the chance to sample Baobab fruit,
mangoes large and small, and traffic lights of bananas ( red yellow and green!)

Of course there is also Jack fruit, papaya, grapefruit, avocado, passion fruit, wild custard apples, star berries and water melon........... all finished
off with Coffee and Amarula.

Tides (and stomach) permitting after lunch you can sail in ngalawa , small fishing boats, visit the 500 year old Baobab Tree and have a last dip
before we let the sails take us back to our landing point at Menai Bay.

http://www.zanzibarmagic.com/english2nd/safari%20blue%20zanzibar%20fumba.htm

Spice Tour
Morning at 9:00am trip to spice and botanical tour on this tour you will see and taste the tropical fruits, spices
plantation or plots in the island. A variety of plants used as ornament, medicines, flowers, fruits and another interesting flora can
be seen during spice and botanical tour and visit to Kidichi bath in 1850 by the first Sultan for his wife Sheharzad (grand daughter of
Fateh Ali Shah of Persia.

http://www.zanzibarmagic.com/english2nd/spice%20tours.htm

http://www.botanicresortzanzibar.com/zanzibar-tours-and-excursions/zanzibar/zanzibar-tours-and-excursions

http://www.botanicresortzanzibar.com/zanzibar-packages/botanic-resort-zanzibar/zanzibar-packages

Sample itinerary of a budget camping safari, also used for lodge or tented camp safaris starting and ending in Arusha Town.

5 DAYS 4 NIGHTS

Day 01: Arusha Tarangire National Park
Pick up from your hotel in Arusha or from the airport and drive on tarmac road 120km to Tarangire National Park for game drives. Lunch picnic there
after lunch continue with afternoon game viewing in the park, a home to Lion, Leopard, Elephant, buffalo, Python, Zebra, Oryx, Impala and more
Over 450 species of birds have been observed. Dinner and overnight at Tarangire Zion campsite FB

Day 02: Tarangire National Park Lake Manyara National Park


163
Breakfast at 0700am. Pick up at your campsite at 0800am and drive on tarmac road 70km with lunch box to Lake Manyara National Park on the
base of the Great Rift Valley , for the Afternoon game drives. The park is home to Lion, Hippo, Elephant, Zebra, Buffalo, Giraffe, Baboon, Blue and
Vervet monkey, Warthog and moreAbout 350 species of birds have been recorded. This small park contains also five distinct vegetation zones.
Thus supporting a large variety of birds and animals. The Manyara National park is also famous for its large flocks of flamingos. Dinner and
overnight at Lake Manyara Twiga campsite FB

Day 03: Lake Manyara - Serengeti National Park
Breakfast at around 0700am. Pick up from the campsite at 0800am and drive to the Great Serengeti National Park with lunch and game drives en
route via Ngorongoro Crater rim. Serengeti National Park is a home to lion, leopard, Elephant, Cheetah, Buffalo , Zebra, Wildebeest, Eland, Wild
dog, Gazelles, Crocs and more. Lot of birds includes the Eurasia migrants. Dinner and Overnight at Seronera Campsite. FB

Day 04: Serengeti - Ngorongoro Crater Rim
Wake up at 0600hours for early morning game drives in Serengeti at 0900 hours back to the campsite for breakfast. Then check out and drive with
lunch and game viewing en route to Ngorongoro Crater Rim for Dinner and Overnight at Simba Campsite. FB

Day 05: Ngorongoro Crater Floor Arusha
Wake up early morning for breakfast then at 0730hours descend into the Crater floor for game drives. All the Big five Rhino Lion, Leopard, Buffalo
and Elephant live in this wonderful caldera, others are Zebra, Hippo, Wildebeest, Hyena and moreBirds includes flamingos on the Soda lake,
Geese, Storks, Vultures and more.. Break for lunch at Ngoitoktok spring Picnic sites it will be an unforgettable experience. After lunch proceed with
fame viewing while ascending the Crater and drive to Arusha for the drop off.

END OF YOUR SAFARI

PAYMENTS: 875$ Per person in the 4 x 4 Land Cruiser/Land Rover

What included:-

-Pick / drop ex hotel/Arusha Airport before and after the trip
-Park entrance fees into the game reserve
-The services of our knowledgeable English speaking driver / guide
-Meals and game drives as per itinerary
-Camping equipments
-Cook and all kitchen utensils.
-Crater service fee
-Camping fees
-Government Taxation
-Service charges
-Safari transport by 4 x 4 (6 seat) with a roof hatch that pops up to enable easy viewing and photography. Group size is 5 participants on private.

Not included in the cost:-

-Drinking water
-Soft drinks, juices, alcoholic and other beverages taken with lunch and dinner


164
-The optional visit to tribal villages e.g. visit to a Masai village
-Optional activities not outlined on the itinerary
-Items of a personal nature e.g. laundry, tips.
-Airport departure tax,
-Local/International flights,
-Visas
-Personal and baggage insurance
-Travel/flying doctors rescue services optional at $50.- USD

What you need to bring:-

-Personal spending money
-Additional toiletries: - toilet paper, bathing soap and towels are provided at the lodges
-Bathroom slippers
-Insect repellent; -Enough film for your cameras
-Light clothes for day wear
-Warm jacket/pullover/sweat-shirt/fleece for the chilly evenings and mornings
-Sneakers, walking boots or sandals

http://www.botanicresortzanzibar.com/tanzania-safari/tanzania-safari/tanzania-safari

Emails of interest from potential investors and customers:
Dear Sir,

I have gone through your advertised botanic resort project with
interest, and as I've been researching for the right investment
opportunity in Zanzibar for sometime now, the initial idea of your
project sounds great to me.

I'm a hotelier/Caterer/food service professional with more than 25
years of experience in different areas of the hospitality industry and
I'll be interested to join hands with you in order to bring this
project to reality ( I have additional innovative ideas which can be
incorporated).

I'll appreciate if I can have full details on the said project,
photos, business plan & related projections along with the estimated
required share funding.

Best Regards,

C
o
p
y
r
i
g
h
t

E
n
v
i
s
i
o
n

S
B
S
.

2
0
0
4
.


165

Basim Wafa. Basim Abu Al Wafa bawafa@ncth.ae
----------------------------------------------------------------------------------------------------------------
Dear Sirs,

I ran across your website and I want to know at what stage are you in. The site is dated 2003. Is the project completed? At that time you stated
that you were open to work with the right partner(s) willing to invest with the current sponsors to build a golf course. Is that still a possibility?

Would you be so kind as to send me your current business plans indicating current needs and estimated funding needed.

Please email me: ellsworth.lear@sbcglobal.net USA
SMR #101030355 ICC member

, The Internet Catalog Club of Incredible Concepts, Inc., and its benefits. Check out our website www.incredible-concepts.com, read the two
links "The Jungle Book" and "The Global Horn Of Plenty". These two articles will give you very good perspective on what we are all about, click
on the link "Requisitions Board" and scan a listing of many projects that are under consideration for funding. Also check out how we can save
you on energy cost at your resort, go to www.poweravenuecorp.com and read all about the coming Hydrogen Economy that is now available
worldwide and growing.

If interested please contact me at: ellsworthlear@sbcglobal.net

Thank you. Hope to hear from you soon.

Ellsworth C. Lear
--------------------------------------------------------------------------------------------------------------------------
Dear Sir,

I have gone through your website at http://www.zanzibarmagic.com/english2nd/botanic%20project.htm.

Please provide " Business Plan with figures and estimations email: info@zanzibarmagic.com "

Kind Regards,

Sh. Sabeel Mumtaz Khalid Latif klbivings@hotmail.com


166
Dear David,
Thank you for your mail. Do you know another place to stay in the area? We will ride our bicycles from Pongwe to Jambiani and the distance will
be hard to cover in one day. The Botanic was the only one I found in the area...

Regards
Jenny jennyluetjens@web.de

Hello
We are looking for a double room with en suite for up to 7 nights
around the beginning of March 2010. Could you advise us what you have
available?
We are interested in photographing spice trees, and wonder what you
have growing in the grounds. From the photos on the site it looks like
vanilla and nutmeg. Do you have cloves and cardomom?
Thanks
Julie and Matthew Julie Bruton-Seal and Matthew Seal julieandmatthew@btinternet.com
Hi

Please advise the rates per room per night during the month of October.
Does the hotel offer airline staff discount?
Is there a website I can view pictures and information on the hotel/resort?

Thank you,

Ren Wyngaard renewyngaard@cpt.flysaa.com

Cargo Reservations
South African Airways Cargo
Cape Town International Airport
7525
* +27-(0)21-936-2022 begin_of_the_skype_highlighting +27-(0)21-936-2022 end_of_the_skype_highlighting
7 +27-(0)21-936-2027 begin_of_the_skype_highlighting +27-(0)21-936-2027 end_of_the_skype_highlighting
Greetings,


167
How are you today ? We have a number of 3 couples coming for
accommodation in your property for the dates November 1th - 8th 2008.
Do you have the dates for the reservations? If the dates are available
let me know the total cost for the 7 nights for 3 couples. Do you
accept Credit cards for payment? Also Let me know about feeding and
Other services you offer.

Regards.
Dr Harrison Douglas harrisondouglas@rocketmail.com
-------------------------------------------------------------------------------------------------------------------------
Dear Sir or Madam,

we are a tour operator in Moshi. We will visit Zanzibar for a research between 11th and 16th of October. It would be a pleasure to meet you
and visit Botanic Resort.

Meanwhile I would like to get your pricelist and commission rates for 2010 and 2011.

Kind regard from Moshi
Madeleine Schrder

A F R O M A X X

Madeleine Schrder
+255.684.450.458

Alexander Jatho
+255.755.879915

P.O. Box 1962
Moshi Tanzania

Festnetz
+255.27.275.3854
mail@afromaxx.com
www.afromaxx.com


168

Credits

References and Interviews Facts and Figures:

ZANZIBAR VISITOR ARRIVALS 1990-1999

Year Arrivals
1 1990 42141
2 1991 50827
3 1992 59747
4 1993 68597
5 1994 41433
6 1995 56415
7 1996 69159
8 1997 86495
9 1998 86455
10 1999 86918

Total 648,179
Average: 64,818

ZANZIBAR MONTHLY VISITOR ARRIVALS 1999

Month Arrivals
1 January 8104
2 February 7716
3 March 7784
4 April 4232
5 May 3243 lowest
6 June 4384
7 July 8590


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8 August 10324 Highest
9 September 8243
10 October 8262
11 November 7172
12 December 8864

Total 86,918
Average 7,243

(Source: Zanzibar Commission of Tourism).

Zanzibar is still a new travel destination.

Yearly 80,000 to 100,000 tourist visit Zanzibar. This is a small number and the potential that thousands will visit the islands in the future is great.

2003
Country/Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Ame/Can 196 216 212 107 157 294 357 269 178 248 199 377
Aus/Nez 297 259 202 182 107 165 209 311 261 624 339 331
Belgium
British 376 259 272 282 229 320 682 686 389 401 224 414
Dutch
French 111 114 76 61 91 79 172 200 136 133 81 87
Germany 193 252 187 138 80 125 230 386 260 204 155 207
Italian 94 73 26 25 16 34 102 418 149 19 57 78
Japan 38 24 38 31 13 26 34 66 53 21 26 75
Kenya 54 26 33 54 24 34 69 144 27 150 36 129
O.Africa 39 24 57 41 22 35 80 28 31 17 29 72
O.Amer 9 16 3 12 3 14 10 11 6 9 10 3
O.Asia 123 47 65 74 56 125 124 138 81 120 60 114
O.EUR 406 404 277 240 188 387 948 1114 570 604 344 489
S.Africa 84 65 86 56 81 124 194 90 94 104 96 218
Scand 290 324 189 206 92 278 449 211 150 254 238 454

2004
Ame/Can 196 216 212 107 157 294 357 269 178 248 199 377
Aus/Nez 297 259 202 182 107 165 209 311 261 624 339 331
Belgium
British 376 259 272 282 229 320 682 686 389 401 224 414
Dutch
French 111 114 76 61 91 79 172 200 136 133 81 87


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Germany 193 252 187 138 80 125 230 386 260 204 155 207
Italian 94 73 26 25 16 34 102 418 149 19 57 78
Japan 38 24 38 31 13 26 34 66 53 21 26 75
Kenya 54 26 33 54 24 34 69 144 27 150 36 129
O.Africa 39 24 57 41 22 35 80 28 31 17 29 72
O.Amer 9 16 3 12 3 14 10 11 6 9 10 3
O.Asia 123 47 65 74 56 125 124 138 81 120 60 114
O.EUR 406 404 277 240 188 387 948 1114 570 604 344 489
S.Africa 84 65 86 56 81 124 194 90 94 104 96 218
Scand 290 324 189 206 92 278 449 211 150 254 238 454

2005
Ame/Can 196 216 212 107 157 294 357 269 178 248 199 377
Aus/Nez 297 259 202 182 107 165 209 311 261 624 339 331
Belgium
British 376 259 272 282 229 320 682 686 389 401 224 414
Dutch
French 111 114 76 61 91 79 172 200 136 133 81 87
Germany 193 252 187 138 80 125 230 386 260 204 155 207
Italian 94 73 26 25 16 34 102 418 149 19 57 78
Japan 38 24 38 31 13 26 34 66 53 21 26 75
Kenya 54 26 33 54 24 34 69 144 27 150 36 129
O.Africa 39 24 57 41 22 35 80 28 31 17 29 72
O.Amer 9 16 3 12 3 14 10 11 6 9 10 3
O.Asia 123 47 65 74 56 125 124 138 81 120 60 114
O.EUR 406 404 277 240 188 387 948 1114 570 604 344 489
S.Africa 84 65 86 56 81 124 194 90 94 104 96 218
Scand 290 324 189 206 92 278 449 211 150 254 238 454

Source: Zanzibar Official Tourist Portal www.zanzibartourism.net

Natural Resources and Tourism Minister Jumanne Maghembe said global tourism was growing at an average rate of 5.1 per cent annually and
the growth rate for Africa ranged between 8.1 and 8.5 per cent but growth in Tanzanias tourism industry had registered a 15 per cent growth rate
since 2005.

Currently, tourism contributes some 17.2 per cent to the countrys gross domestic product, second to agriculture. However, local tourism experts
predict that the industrys contribution to the GDP might surpass that of agriculture by 2012.

The sectors bright future is thanks to the fact that it attracts visitors from abroad and decorative shops stocked with unique clothes and other items
catch the eyes of tourism enthusiasts.


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`It is possible to enhance the (tourism) industrys profile and thus increase the number of tourist arrivals if we make efforts to have more tourism-
related facilities, noted TTB official Amant Macha.

Official records show that Tanzania hosted 700,000 tourists last year, and experts have projected that the figure will reach one million this year.

According to some projections, the countrys tourist arrivals could hit the 1,500,000 mark by 2010 and two million five years later.
SOURCE: Guardian

Tourism has been Zanzibars and Tanzania's fastest growing sector in the past three years.

Tourism figures show that about 480,000 tourists were received in the 1998/1999 financial year in Tanzania, a far cry from the 180,000 figure of
1991/1992.
Earnings from the sector rose from USD 94.7 million in 1991/1992 to over USD 515 million in 1998/1999. More than 30,000 Tanzanians have been
employed in the sector. In last financial year (1998/1999) tourism accounted for 16.5 percent of GDP, higher than 7.5 percent in 1995/1996.

It is expected to be the sector whose steady growth will create more jobs and increase income this century, according to analysts.

The government is implementing the new national tourism policy that encourages people to invest in the industry and an integrated tourism master
plan intending to guard tourism activities and development in the country.

According Mr. Ole Naiko, director of investment at the Tanzania Investment Centre (TIC), from 1990 to June last year, a total of 190 tourism
projects have been approved by his centre, which is the government's agency for promoting investment.

Zanzibar attracts more tourists in past year

A total of 125,443 tourists visited the Indian Ocean archipelago of Zanzibar in 2005, 33,282 more than the previous 12 months.

The marketing director of the Zanzibar Tourism Commission has attributed the increase of tourists to improved infrastructure, social and
economic stability and promotional campaigns.

Ali Khalil Mirza said that the period between July and September was the peak tourism season in Zanzibar when the isles drew 44,385 tourists
whereas the months of April, May and June were the off-season when only 12,688 tourists came.

As many as 35,567 tourists visited Zanzibar in between January and February to render the period another on-season, according to figures available
from the isles on Saturday.

But the marketing director did not reveal the tourism revenue for the past year.

The number of foreign tourists to Zanzibar has been increasing by an average of 13 percent each year in recent years, boosting Zanzibar economic
growth in terms of gross domestic product by an average of 15 percent a year.

Tourism has come to account for one fifth of Zanzibar's gross domestic product as the 2004/2005 fiscal year ending in June last year earned more
than 55 million U.S. dollars from the tourism sector alone.


172

Issa Ahmed Othman, director of the Zanzibar Tourism Commission, said earlier this month that most of the foreign tourists came from Europe,
especially from Italy.

Other countries that produced large numbers of tourists included Britain, Spain and the United States.

More than a third, or 45,065, of last year's foreign tourists came from Italy between January and December.

Source: Xinhua

For the first time ever, American visitors represent the largest single tourism market for Tanzania, attracting a record high of 58,379 in 2007. Taking
over from the traditional place held by the UK market, the number is even greater when the US is combined with Canada (North America), 83,930 in
2007. Supporting this growth of tourism from North America to mainland Tanzania and the spice islands of Zanzibar, is the fact that the number of
American and Canadian tour operators offering Tanzania as a stand-alone destination has also soared.

The jump in US and Canadian visitors can be attributed to several factors, said Hon. Shamsa Selengia Mwangunga, Minister of Natural Resources
and Tourism for the United Republic of Tanzania. One is Tanzanias aggressive promotion, particularly in the past year. Significantly, so successful
have these efforts been that Tourism now exceeds Agriculture as Tanzanias leading economic sector. A total of 750,000 tourists in all are expected
in Tanzania this year. They are predicted to bring in revenue of about $950 million dollars. Second, but of major importance for tourists, is the fact
that Tanzania is a peaceful and stable country, with a democratically elected government, strong ties with the US and warm friendly people.

Peter Mwenguo, Managing Director, Tanzania Tourist Board, added, we are confident that this trend will continue as we begin to see the results of
our first ever TV Broadcast campaign, launched in September 2007, on CNN USA.

The campaign, Tanzania Land of Kilimanjaro, Zanzibar and the Serengeti appeared on CNN, CNN Headline News, CNN Airports and CNN.com.
It culminated in a Tanzania Sweepstakes on CNN.com in March which resulted in 39,000 plus entries.

Simultaneous to the TV Campaign targeting the American travelers, TTB launched a Tanzania Travel Agent Specialist program through Travel
Agent University. More than 500 travel agents completed the course earning certificates qualifying them as Tanzania Specialists.

In order to ensure the quality of the tourism experience, and continue this fast-paced growth, said TTB Director of Marketing, Amant Macha,
Tanzania has facilitated increased air access, built new hotels expanding the number of luxury properties on the Mainland and in Zanzibar and
improved infrastructure and tarmac roads on safari circuits. We are also diversifying our product, putting greater emphasis on the Southern Circuit,
where we have Ruaha National Park, the largest in Africa, and the Selous Game Reserve, a UNESCO World Heritage Site.

The Websites will bring in a lot of extra commissions from others services and travel arrangements offered as a tour operator and a travel agents
doing bookings and reservations for all related services in tourism on Zanzibar and Tanzania. This would cover airlines, accommodation, safaris, car
hire, weddings and honeymoons, excursions and tours


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At the moment Tanzania is making its name and image in the Tourist Industry, Arusha is the Mecca Town of Safaris. Over half a million tourists visit
Tanzania yearly. From a statistic point of view Tanzania ranks 9 as the most visited destination in Africa and Zanzibar ranks No. 1 as the most
visited destination with visitors from within Africa itself.

After independence in 1961 to 1972, only 200,000 tourists where registered
having entered the country.

From 1973 to 1989 very few tourists visited due to economical situation in the country was not stabile.

In 1990 only 153,000 tourists were registered as entering the country while in 1999, 627,000 Tourists entered the country.

In the year 2000 a reduction of 20% less visitors was registered, but even though with this reduction, there was an income of 6,34 Million US$. This
shows that Tanzania has an attractive Tourism Market and does not depend on mass tourism.

(Source Tanzania Tourist Board 2000.):

International visitors traveling to Tanzania come from:

U.K (11% of all visitors), the USA (9%). Scandinavia (7%), Germany (5%) and more and more from East Asia and Japan, more North
American/Canadians and even the Chinese and Indian are coming in recent times!!

Average visit lasts in Tanzania is 7 nights with intention for Leisure (62%), Business and conferences (27%) and others (11%).

(Source: TTB Tanzania Tourist Board 2000).

Zanzibar Tourism Sector Profile

Monday, 09 January 2006 00:00

TANZANIAINVEST has been interviewing Mrs. Antonella Balestra, former Executive Board Member of the Zanzibar Association of Tourist
Investors (ZATI), to learn about the Zanzibar tourism sector and about the investment opportunities available.

TI: Could you explain to us the historical development of the Zanzibar tourism sector?

Antonella Balestra - Zanzibar Association of Tourist Investors: The tourism industry is only about a decade old, in its modern sense, although
interested travelers have always visited the island due to its aura of history, the role it played in the slave trade, and its political and cultural
relationships with foreign powers and countries such as Madagascar, Oman and Yemen.

In 1984, fewer than 20,000 tourists visited Zanzibar and, of these, many would have been VFR (visiting friends and relatives).

The first new tourist hotel was built in 1990-92 and, from that point we could say the modern tourism industry of Zanzibar began.


174

Table 1 gives the officially recorded international visitor arrivals.
Table1
International Visitor Arrivals - Zanzibar
YEAR TOTAL AIRPORT SEAPORT
TOTAL % TOTAL
1990 42141 NA NA NA NA
1991 50827 NA NA NA NA
1992 59747 NA NA NA NA
1993 68597 NA NA NA NA
1994 41433 NA NA NA NA
1995 56415 NA NA NA NA
1996 69159 NA NA NA NA
1997 86495 47078 54.43 39412 45.57
1998 86455 47797 55.29 38658 44.71
1999 86918 42000 48.32 44918 51.68
2000 97165 56268 57.91 40897 42.09
2001 76329 40799 53.45 35530 46.55
2002 87511 52876 60.42 34635 39.58
2003 68365 39536 57.83 28829 42.17
2004 92161
Source: Zanzibar Commission for Tourism


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However, not all international visitor arrivals are covered, as many tourists, business and VFR arrivals have already completed immigration
formalities elsewhere in Tanzania.

Over 40% of all tourists to Tanzania arrive through Nairobi and travel to Tanzania by regional flights or roads.
Furthermore, domestic tourism is automatically excluded (since an immigration arrival card is not required) from the current data set, and this is
known to be significant.

East African tourism, especially from Kenya, has also risen with the daily flights of Kenya Airways from Nairobi.

Most problematic, is the fact that the official figures do not include arrivals by domestic air travel from other important tourist destinations (e.g.
Selous) and transit points (e.g. Arusha, Dar es Salaam).

Many visitors come on circuits from the north and south with domestic flights by Air Tanzania, Precision Air, Coastal Aviation, ZanAir, and private
charters.

They are not included in the tourism statistics as they have already passed immigration at another entry point in the country.

We, therefore, estimate that by the year 2000 at least 42,000 people or 45% more than the official estimate of visitors - were arriving in Zanzibar
this way (TABLE 2).

Adding this dimension and the domestic tourism dimension implies at least 130,000 visitors a year, and possibly as many as 150,000 for a normal
year such as during the period from 1997-1999.
Table 2
Passengers Disembarked in Zanzibar from domestic and international flights (excluding transit)
YEAR INTERNATIONAL DOMESTIC TOTAL

1998 94,957
1999 115,689
2000 157,497
2001 72,438 66,922 53.45
2002 107,805 100,559 60.42
2003 101,402 114,392 57.83
Source: Tanzania Civil Aviation Authority


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Another method of cross-checking tourist arrivals is to make an estimate based upon rooms available and average stay.

Zanzibar has at least 6,200 beds in 6 classes of accommodation, but there is a disproportionately large number in ungraded, one and two star
categories.

Comparable tourist destinations with resources such as those of Unguja (Zanzibar) and Mafia would have the majority of beds in 3, 4 and 5 star
hotels.

Furthermore, the authors believe that the official records of accommodation facilities are out-of-date and significantly understate the actual beds and
rooms available on Zanzibar.

An estimate of total tourist bed-nights can then be made by taking the total beds available and multiplying by 300 nights (allowing for 65 days of low
or closed season).

This gives potential total bed-nights available of 1,860,000.
If we assume 27% occupancy (in 300 nights) we arrive at 500,000 bed-nights.

Given the low occupancy of many guest houses and the number of units closed at any time on Zanzibar, this may be an acceptable estimate.

However, if a more plausible and minimum economic occupancy of 40% is used, then the total bed-nights on Zanzibar comes to 740,000 bed nights.

This higher estimate is reasonable if the arrivals by domestic airlines are added.

At 5 nights average stay, the total bed nights spent on Zanzibar implies 150,000 visitor arrivals.

This provides a reasonable cross-check of the visitor arrivals by international and domestic flights and the starting point for our work.

From the reasoning given above, it can be assumed that there are between 90,000 (official estimate) and 110,000 visitor arrivals per annum on
holiday, based on immigration returns and other sources (see Table 1).

The average stay is not known but five (5) nights is believed by the authors to be the minimum average.

This implies some 500,000 bed-nights in all classes of hotels.

While the breakdown between international and domestic tourism is unknown, as is the business and VFR (visiting friends and relatives)
components, holiday is expected to be at least 90% of hotel and boarding house bed-nights.

Of the average minimum 100,000 visitors some 50,000 are staying in tourist class hotels, the remainder staying in guest houses and ungraded
hotels.

This is based on a current (2004, certainly lower than actual) count of 2,400 tourist-class beds and 3,700 guest house and unclassified beds.


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The Events of 2001-2004 and the Economic Impact:

Since September 11, 2001, Zanzibar has suffered a series of shocks to its tourist industry; these follow the earlier effects of the 1995 and 2000
elections, which also set back tourism and harmed the economy.

Of greatest impact were the travel advisories issued against Zanzibar from November 2002 February 2003, which led to a downturn of more than
40% in the annual visitor numbers.

We believe that the impact was at least US$ 18 million lost from earnings to Zanzibar from the broad spectrum of multiplier effects from the tourism
industry.

This is based on estimates made in view of the following data:

the fall in tourism is believed to have represented at least 60,000 visitors
nearly half of all visitors arrange their holidays directly with hotels and guest houses in Zanzibar
one-third of the industry is based upon direct contracts between tour operators and hoteliers for package tours
estimates of expenditure made by visitors on Zanzibar, not including hotels and airlines
loss of airport taxes, visas and other direct revenues from fees paid by visitors

Seasonality

Tourism in East Africa is extremely seasonal, dictated by the climate (rains in late March-May) and by visitor characteristics (the periods of the year
when visitors travel which varies; e.g. Italians in August, New Year and February, Spanish April to June, Swiss October to December).
Table 3
Monthly International Visitor Arrivals - Zanzibar
MONTH 1997 1998 1999 2000 2001 2002 2003
JAN 7336 8552 8104 7324 9324 7830 6019
FEB 7374 7829 7716 8364 3583 8734 3503
MAR 8022 7659 7784 7964 3667 7755 2829
APR 3573 4256 4232 5008 2922 3239 2480
MAY 3026 3284 3243 3288 2639 3091 1961
JUN 4489 4283 4384 4853 4943 4440 3131
JULY 8610 8491 8590 9822 8793 9101 8305
AUG 11191 10925 10324 13773 12165 11937 9932
SEPT 7196 7584 8243 9708 8337 8587 7408
OCT 7640 7583 8262 9637 7402 8387 7619
NOV 7718 7004 7172 7911 5159 5722 6056


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DEC 10320 9005 8864 9531 7415 8688 9122

Existing Accommodation Facilities

Zanzibar, Pemba and Mafia

The existing accommodation in Zanzibar includes very few hotels or resorts that may be classified as five- or even four- star in terms of international
standards.

The standards of design construction and finish are low and prohibit high ratings, except for a handful of recent projects.

Zanzibar has rated its tourist hotels (boarding houses and similar premises are un-rated) and only five properties fall into the five-star category.

However, these properties would be unlikely to be rated at five stars under the international system of rating.

A further 2,000-3,000 hotel beds are planned and forecasted for construction over the coming five- to ten-year period in all classes.


179

This includes some exceptionally good investments by important and valued international investors; these developments will have a very positive
impact on improving the standards and recognition of Zanzibars hotel industry.

In Pemba and Mafia, the hotel industry is virtually undeveloped by comparison.
On Pemba, there is Fundu Lagoon and Manta Reef Lodge.

The Kiweni Project is in receivership.

Two floating facilities exist (Pemba Afloat and Floating Beach Resort).

Swahili Divers operates a guest house, alongside the two Government-owned guest houses at Wete and Mkoani.

On Mafia, the Mafia Island Lodge remains extremely run-down despite having been privatized, and the remaining three resorts are small specialised
units catering to specific market segments.

Of these, Kinasi is undeniably the best, with the only swimming pool, two restaurants and a high standard of design, finish and furnishing.

Present Tourism to Zanzibar

Tourists to Zanzibar come mainly from Europe (over 60% of overseas visitors) with Italy and France being, by far, the largest sources.

The United States and Canada are also important origins, as most safari companies marketing in North America offer Zanzibar in their itineraries.

West Germany, Switzerland, United Kingdom, Italy and France dominate coastal tourism in Kenya; in Zanzibar Italy, Spain, France, United Kingdom
and Scandinavia are the main markets.

In addition, residents of Kenya are a very important source of visitors, ranking third in total bed-nights occupied on the Kenya Coast in response to
special rates applied to Kenya residents and heavy low season reductions in hotel rates.

Similarly, expatriate residents of Dar es Salaam and other parts of Tanzania are a significant source of visitors to Zanzibar, especially during low and
shoulder seasons such as late March and Easter.


180

Table 6
Origin of Zanzibars Tourists by main source market
SOURCE Europe
North
America
Other
Africa
Rest of
the
World
Total
YEAR Italy UK
Other
Europe
Total
Europe

1995 8922 10391 18882 38195 4804 6680 6736 56415
1996 13502 11909 23669 49080 5682 6388 8009 69159
1997 19538 14884 26471 60938 7603 8022 9932 86495
1998 23505 13765 25152 62422 7699 6293 10041 86455
1999 23279 14141 24939 62359 6745 6376 11447 86918
2000 25769 16307 29368 71439 7757 8718 9251 97165
2001 14510 13147 25738 53395 6328 7500 9106 76329
2002 25044 13012 14509 52565 6448 7887 7715 87511
2003 18586 7945 24610 51141 4334 6866 6024 68365
2004 30429 10027 29199 69655 5997 9326 7183 92161


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Zanzibar Tourism Sector

It is important to draw attention to the fact that tourism is an important industry for reasons other than tax generation.

More important, is the foreign exchange income to the local economy, direct and indirect employment, subsidiary and ancillary industries, technology
transfer and training, building and construction, etc. government should not be pre-occupied with direct tax revenues from the industry but more
concerned with its good management to ensure its competitiveness and sustainability in view of its overall importance as an engine of growth and
development.

The primary tourism industry includes:
Tour operators (transport services) and guides
Hotels and guest houses
Restaurants
Marine and boat activities
Travel agents
Ferry boats
Air services
Retail (curio) shops
Tourist attractions and visitor centres
Zanzibar Tourism: Summary of its Economic Role in Perspective

In 2002, the impact on the economy of the tourism industry of Zanzibar can be summarized as follows:
Tourism as a proportion of gross domestic product (GDP) was 14%, and expected to grow to 21% by 2012 (ten years).
Tourism has contributed to improved living standards: in the period from 1998-2001, per capita GDP increased from $ 219 to $ 248
Foreign currency earnings were net US$ 46 million in 2001 from international tourists; this is expected to grow to US$ 116 million in 2012
At least 5,800 people are directly employed by the tourism industry; but total employment is believed to be some 37,000 from tourism due to the
very great indirect employment and multiplier effects of the industry (e.g. fishing, agriculture, transport, building industry, arts and crafts)
At least $ 67 million is invested in tourism, which is the largest sector of investment in Zanzibar
The industry has stimulated the growth of international and regional transport services by air and sea ferry
The direct and indirect contribution to training and transfer of technology, management capabilities, technical expertise, etc.
The economic linkages of the industry provide an important contributing factor to development of local small businesses such as transport (ground
handling services, tour operators, food suppliers, etc.)

Unfortunately, these data have not been updated following a wave of new investment; we believe that over US$ 100 million is now invested by the
private sector in tourism facilities.

The years 2004 and 2005 have been boom years for Tanzanian tourism and we estimate that over 1,250,000 international visitors are arriving each
year in Zanzibar.


182

TI: How would you define the destination in term of: infrastructures, price and security?
AB: I. Infrastructure: Poor, although there are plans and actions in place.

The airport and harbor are both a disgrace and our views and efforts in regard to these two facilities are well known.

Power cuts are increasingly common, roads are haphazardly maintained, there is no solid waste management at all, and no monitoring of
environmental conditions such as water quality.

II. Price: Zanzibar is generally over-priced for what (product) it is offering, taking into account the (lack of) attention to detail and the deteriorating
environmental and infrastructure situation.

The reason for this is that Tanzania is a very expensive business environment and the indirect taxes, charges, cesses, fees, etc. add enormously to
overheads.

Furthermore, investors in Zanzibar are faced with much higher costs as a result of poor or absent services (power, solid waste disposal, water
supply).

There is not enough quality input produce for the industry (vegetables, etc.) and the weak manufacturing sector means that there is a very high level
of imports in tourism services.

Finally, taxes (both visible and invisible) are high.

III. Security: We have put a great deal of pressure on the Government to improve the way security is delivered and have supported this with the
creation of two police posts, financing of patrols and mobile phones.

Unfortunately, this is only as effective as the Police professionalism and dedication reaches.

We would like to see the formation of tourism police force such as that of Thailand or Dubai.

And we believe it is important to remove the Police roadblocks throughout the island, as they create an image of insecurity, provide almost no benefit
to the populace, and are unsightly and generally dangerous to motorists.

Zanzibar Tourism Investment Opportunities and Framework

TI: Is there room for new investors and/or new investments to take place in Tourism in Zanzibar? If so, where would you say are the most interesting
investment opportunities?
AB: Yes, we believe there is much more that can be done to improve and diversify the industry; some concepts we have proposed and would
improve the attractions and be financial opportunities include:


183
There is much more that can be done to improve and diversify the industry
Theme-based visitor centers (e.g. tropical garden-arboretum-botanical gardens, essential oil factories) with restaurants (perhaps based on
menus and foods devised for the spice influence, etc.
Golf and other major sports included in a club facility open to the public, also with restaurant/s and other family-oriented facilities
Horse-riding (a well-maintained and farm environment, with a horse trail)
A forest eco-lodge and camping trail in Jozani Forest (a vast section of the Forest is completely unutilized, including a small lake in the
central zone)
Adventure tourism and challenge tourism
Childrens tourism with social interaction with local children and village life
Casinos (at present gambling is prohibited) and an indoor entertainment complex
Duty-free shopping mall
There are a number of government-held properties that offer good investment opportunities if the private sector were to be involved.

Examples include the Maruhubi training school premises, the Beit al Ajaib, the Old Fort.

The Stone Town itself requires much better management, especially to keep the town well-lit at night, free of the dozen or so beach boys who
harass tourist (usually through a fog of drugs), removal of waste and rubbish.

The Aga Khan-sponsored upgrading of the seafront and Forodhani Gardens should go ahead as soon as possible.

We imagine specified pedestrian walkways, craft areas and outdoor restaurants rather than the willy-nilly and unattractive hawking that currently
takes place around the town and Beit al Ajabi.

The crowding of pathways with hawkers forces pedestrians onto trafficked roads.

In addition, Zanzibar needs to improve the standard and variety of its guided tours, especially nature-based, agricultural (spice) and historic-
architectural excursions.

It is incumbent upon tour companies to do this through training and more attention to the detail that is involved in these tours.

The Zanzibar museum is a disgrace and needs a great deal of attention and investment to make it an interesting attraction.

This could be let to an entrepreneur who would be allowed to add a small theatre, restaurant, etc. the same approach should be taken with historical
monuments that should be turned over to local communities to manage and maintain and used to generate income for school projects.

TI: Based on your personal experience, how would you define the current investment framework in Zanzibar and how would you say it evolved since
you first arrived on the Island?

AB: The framework is adequate; what matters in any investment environment and developing economy is the support network, level of commitment,
openness, transparency (ethical behavior) and implementation capacity.


184
The [investment] framework is adequate
You can have the best Formula 1 racing car and still not win a race.

In this regard, both the creation of the guiding plans and policies and their implementation fall far short of what is required to make the best use of
private sector investment and Governments expenditure on its manpower.

The technical capabilities within government are inadequate and the level of commitment to professional, ethical delivery of the necessary
institutional support is seriously inhibiting the industry and its potential to produce benefits.

The Government is not properly managing the industry the infrastructure, the services and utilities, and the law enforcement that is essential in a
modern tourist world and rapidly-changing environment.

TI: What is the support and involvement of the government of the Island in the successful deployment of private investments in tourism?

AB: Tourism is receiving particular policy support as a priority foreign investment industry under Tanzanias economic management and investment
development programs.

Visitor numbers have recovered rapidly in response to trade liberalization, renewed foreign investment, and improved licensing and procedural
regulations, improved availability of fuels throughout Tanzania, and privatization and greater competition.

The main institutional tool for supporting private investors is the Zanzibar Investment Promotion Agency (ZIPA) and the investment legislation of
1996.
The main institutional tool for supporting private investors is the Zanzibar Investment Promotion Agency (ZIPA) and the investment legislation of
1996.
Unfortunately, it is in effecting the policies that the process becomes extremely difficult for investors and a lack of transparency (the modern
expression for ethical behavior) becomes the driving force.

The need to coordinate the roles and delivery from different departments requires a great deal of energy and unexpected expenditure to make any
investment a reality.

There are also gross delays. As you would expect, land issues are probably the most significant hurdle.

ZIPAs role, therefore even with the best intentions and attention are limited by the effectiveness of the partner departments.

There is no ombudsmen system for investors and local businessmen to refer problems and constraints and the re-registration of industry
organisations such as ZATI and ZNNCCIA are very recent.

Zanzibar has lagged behind the mainland in accepting and embracing the private-public sector approach to issues.


185
The quality of tourism Zanzibar receives does not meet the expectations of the Government, which wishes to promote Zanzibar as an up-market
destination to compete with other island destinations in the Indian Ocean, specifically Mauritius, Seychelles, Maldives.

Unfortunately, the past and current trends in hotel development have led to either low quality guesthouses (which do not meet international tourist
standards) or large, mass-market hotels which can only be filled with charter tours.

If Zanzibar is to maximize the benefits of its tourism resources and avoid the boom-bust syndrome associated with low quality and mass tourism, it
will need to upgrade its hotel and visitor services and obtain professional help to design interventions and manage the industry and its associated
aspects.

TI: What are the origins of ZATI? Why and when was it set-up? What are its activities and the results obtained so far?

AB: We first began to form ZATI in 1998-1999.

An informal group of investors had been trying, independently, to draw the Governments attention to problems in the industry, which threaten the
quality and durability of the tourism product (and, therefore, the value of any investment).

These two groups came together at a meeting with the former president in April 1999, at a rather unsuccessful meeting of all departments and
institutions directly and indirectly associated with tourism.

Essentially, the investors were blamed for the shortcomings in the industry, so our efforts to create a constructive dialogue and joint private-public
partnership to deal with issues such as solid wastes, public attitudes to tourism, marketing, the beach boy phenomenon, etc. were set back very
badly.

Unfortunately, some influential personalities in Government felt threatened by the private sector lobbying, rather than seeing our actions for what
they were and still are constructive, objective-oriented, problem-solving.

As a result of this setback, it took us a further 4 years, until early 1993, for a change of President and a new and imaginative Minister to effect the
formal registration of ZATI.

Most of the major problems affecting the industry remain and, of course, have grown along with tourist numbers, but we now at least have a platform
for dialogue and action and the President is also forming the Business Council which will enhance this process with greater across-industry reach in
solving problems such as power, services, security.

Government now involves the private sector in almost all its deliberations.
Government now involves the private sector in almost all its deliberations.
The main activities have been directed at strengthening our relationship with government so we carried out joint training courses, a visitor exit
survey, and so on.

We were particularly active in 2003, when we devoted much time to this.


186

Zanzibar Tourism Overview

TI: What are the major challenges the tourism industry in Zanzibar is faced in the next years, if not in the immediate future?

AB: We can list these as:
Creating a tourism master plan and sticking to it, since all else flows from this (e.g. ensuring demolition of unplanned squatter settlements
that are home to many of the beach boys, local gangs and petty thieves, prostitutes and drug dealers)
Security (at least the image and actions towards this) from international terrorism and local lawlessness
Infrastructure (airport, harbor, roads) and utilities (power, water supply, solid and liquid wastes)
Planning, policy and enforcement of regulations, especially dealing with land use and environment (i.e. a more effective, professional and
ethical government and institutional presence)
A common-sense and uniform taxation system that encourages investor cooperation, fosters competition and supports quality improvements
in the industry
Training and HRD
Marketing and promotion, accompanied by planned diversification and reinvestment that is part of the overall master plan and encouraged-
supported by imaginative policies (e.g. tax breaks, low rentals of government property)
Monitoring, continual study of the industry, referral and close administration to ensure that Zanzibar is delivering and that the industry is
providing the full benefits to the public.
An improved medical and emergency capability.
Improvement of tourist services such as ATMs, public toilets, tourism police.
There is no doubt about improving quality and standards and this involves both the physical environment of the hotels and the abilities and service
levels of the management and staff.

These two features encompass a host of criteria: personal safety of guests, peace and quiet on beaches (rather than endless harassment by beach
boys), a feeling of goodwill and joy (rather than being a source of financial gain), a clean environment, well-trained attentive staff in all aspects of
the industry, and so on.

TI: Where do you see the future of such destination, taking into consideration the recent focus of the national government towards the development
of the mainland southern circuit?

AB: Zanzibar will continue to be a great attraction to overseas tourists but will need much better management by Government and very substantial
investment.
Zanzibar will continue to be a great attraction to overseas tourists but will need [...] very substantial investment.
Zanzibar is very easily and relatively cheaply reached by air and sea, and fits well into both the northern and southern tourist circuits.

In fact, it is increasingly the hub, rather than dare s Salaam.


187

At least a third of all international tourist to Tanzania visit Zanzibar.

TI: What would be you personal message to foreign investors considering the tourism industry in Zanzibar and in Tanzania?

AB: Be careful, seek advice from those who have become investors, be patient and determined.

Most of all be realistic and be sure to assess and carefully target the market/market segment that you believe exists. Do your research.
We believe Zanzibar has the potential for a great future
Unfortunately many investors are driven by chance meetings, emotions, dreams or relationships, rather than business sense and market research.

We believe Zanzibar has the potential for a great future, especially as investors in other industries get moving (e.g. sugar, floriculture) because these
changes make an economy.

The most recent quality investments by Italian and Gulf investors has been an effective and refreshing change in direction to a higher-value product,
and improvements are going on in many properties, with the addition of spas, improved furnishings, training, etc.

But Government must get its act together on energy and environment and social issues.

Websites: http://www.zanzibarmagic.com
http://www.madeintanzaniasafaris.com
http://www.tanzaniasafarizanzibartravel.org
http://www.botanicresortzanzibar.com
http://www.zanzibargolfclub.com


188
Tanzania 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Travel & Tourism Economy GDP
US$ bn 0.080 0.112 0.116 0.141 0.137 0.125 0.173 0.512 0.543 0.438 0.485 0.615 0.568 0.815 0.930 1.019 1.146 1.275 1.429 1.709 1.951 1.705 1.760
Real growth (%) -100.0 58.8 15.2 6.0 5.2 0.0 32.5 163.6 -10.3 -29.3 5.3 27.2 -7.7 46.2 18.4 11.1 9.7 7.7 14.7 10.0 -1.5 -13.6 -0.1
% share 1.6 2.5 2.7 2.8 2.9 2.9 3.8 9.7 8.3 5.7 5.7 7.1 6.2 8.6 9.5 9.9 10.0 10.1 10.8 11.1 10.2 8.4 8.0
Travel & Tourism Direct Industry GDP
US$ bn 0.030 0.040 0.040 0.050 0.050 0.050 0.070 0.245 0.243 0.178 0.201 0.271 0.230 0.378 0.427 0.447 0.516 0.563 0.651 0.767 0.854 0.702 0.730
Real growth (%) -100.0 61.5 14.8 10.6 6.9 -0.5 43.6 221.0 -15.8 -36.1 7.8 35.4 -15.3 67.5 17.1 6.0 12.8 5.5 18.4 8.4 -3.9 -18.7 0.7
% share 0.5 0.8 0.9 1.0 1.0 1.0 1.5 4.6 3.7 2.3 2.4 3.1 2.5 4.0 4.3 4.3 4.5 4.4 4.9 5.0 4.4 3.4 3.3
Travel & Tourism Economy Employment
Real growth (%) -100.0 58.0 11.2 7.3 8.3 2.2 34.5 160.0 -11.3 -29.4 4.2 25.9 -9.1 40.8 14.0 7.7 5.1 3.1 10.3 5.8 -6.2 -15.1 -3.3
% share 1.3 2.0 2.1 2.2 2.3 2.3 3.0 7.6 6.5 4.5 4.5 5.6 4.9 6.8 7.5 7.8 7.9 8.0 8.5 8.8 8.1 6.7 6.3
Travel & Tourism Direct Industry Employment
Real growth (%)
% share 0.4 0.6 0.7 0.7 0.8 0.8 1.1 3.5 2.8 1.7 1.8 2.4 1.9 3.0 3.3 3.3 3.5 3.4 3.8 3.8 3.4 2.6 2.5
Personal Travel & Tourism
US$ bn 0.030 0.030 0.030 0.060 0.070 0.135 0.154 0.262 0.303 0.323 0.395 0.318 0.296 0.294 0.288 0.299 0.368 0.444 0.448 0.482 0.584 0.787 0.845
Real growth (%) -100.0 27.3 10.1 91.2 23.9 107.6 9.0 51.4 -2.0 -6.6 16.2 -19.0 -7.2 1.4 1.5 5.2 20.3 16.8 3.2 -1.0 4.5 33.2 3.8
% share 0.6 0.7 0.8 1.5 1.8 3.7 4.0 5.9 5.6 4.9 5.3 4.1 3.8 3.7 3.7 3.6 4.0 4.3 4.2 3.9 3.8 4.8 4.7
Business Travel
US$ bn 0.040 0.040 0.040 0.040 0.040 0.050 0.050 0.060 0.080 0.090 0.109 0.125 0.124 0.124 0.192 0.213 0.242 0.291 0.324 0.357 0.442 0.464 0.495
Real growth (%) -100.0 18.2 10.3 -7.3 7.8 23.5 7.0 8.9 2.7 2.7 14.0 15.7 -1.2 2.1 60.0 12.8 10.5 16.4 14.1 1.3 6.7 3.8 3.2
% share 0.7 0.8 0.9 0.8 0.8 1.0 1.1 1.2 1.1 1.1 1.2 1.4 1.3 1.3 1.9 2.0 2.1 2.3 2.4 2.3 2.3 2.3 2.2
Government Travel & Tourism Expenditure
US$ bn 0.010 0.010 0.010 0.010 0.010 0.020 0.020 0.040 0.040 0.040 0.030 0.030 0.030 0.030 0.030 0.040 0.040 0.050 0.050 0.060 0.080 0.080 0.080
Real growth (%) -100.0 50.4 28.5 5.9 19.0 31.4 8.3 84.2 -11.8 -21.8 -8.3 -7.2 -0.7 2.7 9.8 13.7 12.7 14.3 10.1 5.4 5.1 -0.3 0.8
% share 0.8 1.2 1.3 1.2 1.4 1.9 2.3 4.6 5.2 5.1 5.1 5.1 5.1 5.3 5.3 5.4 5.4 5.5 5.5 5.5 5.5 5.5 5.6
Capital Investment
US$ bn 0.060 0.070 0.080 0.080 0.090 0.090 0.090 0.108 0.137 0.145 0.156 0.173 0.204 0.204 0.239 0.295 0.303 0.364 0.387 0.505 0.631 0.630 0.640
Real growth (%) -100.0 39.9 22.9 -2.3 20.7 5.6 -6.2 7.5 7.2 -7.4 2.6 11.2 17.9 1.8 21.3 25.5 0.2 16.2 9.0 19.8 7.9 -1.4 -1.6
% share 7.1 8.7 6.9 6.5 7.5 8.5 8.0 10.4 12.7 12.7 11.6 13.0 12.8 12.8 12.8 13.6 12.8 13.1 13.0 14.8 15.0 14.2 13.4
Other (non-visitor) Exports
US$ bn 0.010 0.010 0.010 0.010 0.010 0.010 0.010 0.010 0.020 0.020 0.020 0.020 0.010 0.020 0.020 0.020 0.020 0.020 0.020 0.030 0.030 0.030 0.030
Real growth (%) -100.0 82.2 -15.6 -31.2 13.4 41.1 -5.9 24.4 -12.5 2.4 19.1 -4.4 -32.1 6.8 15.3 34.3 5.8 -6.3 8.5 -2.9 1.4 -6.2 1.0
% share 2.2 3.2 2.4 2.1 2.0 2.3 2.0 2.1 1.9 2.4 3.7 3.9 2.1 1.7 1.7 1.8 1.6 1.3 1.2 1.1 1.0 1.0 1.0
Travel & Tourism Demand
US$ bn 0.181 0.219 0.229 0.303 0.348 0.446 0.506 0.987 1.045 0.954 1.120 1.135 1.050 1.295 1.407 1.520 1.743 2.008 2.225 2.646 3.121 3.096 3.245
Real growth (%) -100.0 44.4 16.1 16.2 24.4 40.2 8.7 73.3 -10.5 -20.0 11.5 1.7 -7.6 25.7 12.6 9.5 11.9 11.5 13.4 9.4 1.7 -1.9 1.4
% share 2.8 3.7 3.9 4.6 5.5 7.1 8.0 13.3 12.0 9.8 10.4 10.4 9.4 11.1 11.8 11.7 11.7 11.9 12.1 12.2 11.5 11.3 10.8


189

Declining tourism numbers put Tanzania on alert

Dec 27, 2009

Declining international tourist arrivals in Tanzania have put the country on alert.
Government sources indicate that tourist arrivals declined by 10 per cent in the first 10 months of 2009, to reach 576,643 down from 641,951 in
2008.

The UNs World Tourism Organisations 2009 report World Tourism Barometer projects that the negative trends in international tourism emerged
in the second half of 2008 and intensified in 2009 due to the global economic downturn and swine flu pandemic.

According to the report, international tourism dropped by 8 per cent, from 269 million in 2008 to 247 million in the first quarter of 2009.
The organisation also speculates that the trend will carry on to June 2010.

However, Ibrahim Mussa, assistant director, research, training and statistics at Tanzanias Ministry of Natural Resources and Tourism said the
effects of the global crunch had not badly wounded the country.

This is despite statistics showing declining figures with the exception of July, which recorded 79,171 visitors compared to 77,775 visitors in 2008.
The trend is replicated in Zanzibar where the Zanzibar Commission for Tourism has reported only 81,985 tourists arrivals against a projected figure
of 150,000 in 2009.

It is impossible that Zanzibar will salvage the situation that has badly affected the economy because peak periods are elapsing.
Julia Bishop, director of Zanzibar Association of Tourism Investors is optimistic about the country recovering from the crisis.
Tanzania earned $1.2 million from tourism activities in 2008 while Zanzibar received $1.6 million, which is a 3.1 per cent decline from the figures
recorded in 2007.

According to the Ministry of Natural Resources and Tourism, the average length of stay for visitors in Tanzania mainland was nine nights as
compared to 10 in Zanzibar, which earned the country $299 per visitor.
Tanzania is now intensifying its efforts to revamp domestic tourism which grew by 19.3 per cent to reach 639,749 in 2009, compared to 2008.

Source: http://www.eturbonews.com/13486/declining-tourism-numbers-put-tanzania-alert


190
International Tourist Arrivals back at pre-crisis peak level

Madrid, Spain, 09 November 2010

Results through August 2010 prove that international tourism continues to recover from the decline of 4.2% suffered last year under the impact of the
economic crisis. In the first eight months of this year, the number of international tourist arrivals exceeded the record achieved during the same
period of the pre-crisis year 2008. According to the latest issue of the UNWTO World Tourism Barometer, worldwide arrivals between January and
August 2010 totaled 642 million, some 40 million more than during the same months of 2009 (+7%) and 1 million more than in the same period of
the record year 2008. Based on current trends, the number of international tourist arrivals is projected to increase in the range of 5%-6% over the full
year. In 2011, growth is expected to continue at a more moderate pace, at around the long-term average of 4%.

Emerging destinations continue to lead growth while Europe recovers at a slower pace
Worldwide, international tourist arrivals grew by 7% in the first eight months of 2010 compared to the same period of 2009. Results are positive in all
world regions. Emerging economies however continue to lead the way, growing through August at a rate of 8% compared with 5% for advanced
economies.

July and August, the traditional high-season months of the Northern Hemisphere, clearly set new records, attracting respectively 112 million and 108
million international arrivals. These 220 million represented an extra 8 million arrivals over arrivals in the peak year 2008, and 12 million more
compared with the crisis year 2009. Results were strongest in March (+9%), May (+11%) and June (+9%), in contrast to the seriously negative
trends during those same months a year earlier. April showed the weakest results (+2%) following the closure of European airspace due to the
Icelandic volcano's ash cloud.

Although recovery is still lagging in parts of Europe and the Americas, many destinations are already showing real growth and setting new records.
Asia and the Pacific has once again shown resilience and a strong capacity for recovery. The region was caught quite early and suddenly by the
economic crisis but was also the first to show signs of recovery, posting an impressive 14% growth in international arrivals through August 2010.
Compared with the pre-crisis year of 2008, the region has already gained an extra 10 million international tourist arrivals. Most destinations have
registered double-digit growth rates, many even above 20%.

Growth was also strong in the Middle East (+16%), although this was on a very depressed first eight months in 2009. Africa (+9%), the only region
to show growth in 2009, maintained the momentum, further helped by the worldwide publicity created by the FIFA World Football Cup hosted by
South Africa.

In the Americas (+8%), growth has been strong in North and Central America (+9% each). South America (+7%) is on a par with the worldwide
average, while the Caribbean (+3%) is showing a lower rate of growth.

Europe (+3%) is recovering at a slower pace, due to the uneven economic recovery and the impact of the volcanic ash cloud in April. However,
most destinations reported positive figures for the period May to August, in particular in Western Europe (+4%), Central and Eastern Europe (+4%)
and Southern and Mediterranean Europe (+2%). Northern Europe (-3%) is the only sub-region in the world still registering negative results, pulling
the average of the region down.

Stronger than expected growth confirms the resilience of the tourism sector


191
As on previous occasions, such as after the 9/11 attacks in 2001 and the 2003 SARS outbreak, tourism has again confirmed a strong capacity for
recovery. Following a decline of 4% in international tourist arrivals in 2009, the sector is showing real growth and is expected to beat previous
records by the end of 2010.

These results reinforce the message that we have been underscoring since the outbreak of the global crisis at the end of 2008 that tourism is one
of the most dynamic economic sectors and a key driver in creating much needed growth and employment, said UNWTO Secretary-General, Taleb
Rifai, presenting these figures during the UNWTO Ministers Summit at the World Travel Market (London, UK). Tourism has been seriously
impacted by the global crisis, but less than other export sectors, and is currently rebounding faster and more robustly. We call upon governments
worldwide, as well as multilateral forums such as the G-20, to place tourism higher on their agendas as the sector can contribute to our common
objectives of sustaining recovery, regaining jobs and promoting sustainable development," he added.

As previously stressed by UNWTO, risk factors which can negatively impact the pace of recovery remain in many advanced economies, notably
budget constraints to balance public deficits in main source markets and the central issue of unemployment. Just recently, the International Labour
Organization (ILO) warned that the job crisis is set to continue through 2015. The latest figures presented by UNWTO highlight tourism as one of the
most promising sectors to contribute to the unemployment challenge, considering that job creation in tourism tends to outgrow that of other sectors.

In spite of tourisms proven contribution to the economy," Mr. Rifai recalled there has been an increased temptation to introduce and increase
taxation on travel, particularly on air transport. These impediments seriously affect our capacity to generate jobs and stimulate economic growth,
namely through export earnings that are crucial to a stable economic recovery.

Outlook for the full year 2010 and 2011
The positive trend during 2010 is reflected in the steady rise of the UNWTO Tourism Confidence Index. A clear majority of the members of the
UNWTO Panel of Experts evaluated the past eight months of 2010 as better or much better. The rating of prospects for the period September-
December has also further improved, and is up for the fifth consecutive period from the deep trough a year ago.

So far the rebound in arrival numbers has turned out to be stronger than initially anticipated. The 50 countries that already have reported September
data, together with the air transport data, clearly point to another sound month. For the last quarter of the year the pace of growth is expected to slow
down, as it compares with an already positive last quarter of 2009. Based on the current trend, international tourist arrivals are projected to increase
in the range of 5%-6% for the full year of 2010, thus exceeding 2009's total by up to 50 million, and even improving on the record, pre-crisis 2008
count by up to 10 million. First estimates for 2011 point to an increase in international tourist arrivals worldwide in the range of 4% to 5%.

International Tourism Expenditure still lagging behind
International tourism receipts continue to lag somewhat behind arrivals in many destinations, as is generally the trend in recovery periods. The same
trend is observed in tourism expenditure from the major source markets. Among the top ten markets, in terms of expenditure abroad, positive but
modest increases came from traditional source markets, particularly from Germany (+1.5%), the USA (+2.5%), France (+2%), Ital y (+3%) and Japan
(+8%). As in recent years, emerging economies are driving the market's growth and showing strong increases in tourism expenditure abroad, most
notably China (+22%), the Russia Federation (+26%) and Brazil (+54%).

Source: World Tourist Organization http://www.unwto.org/media/news/en/press_det.php?id=6961&idioma=E

International Tourism: First Results of 2010 confirm Upward Trend
Sofia, Bulgaria / Madrid, Spain 28 April 2010


192
International tourism is steadily gaining momentum following an extremely challenging 2009. International tourist arrivals grew by 7% in the first two
months of 2010 worldwide, according to the latest UNWTO World Tourism Barometer. Growth was particularly strong in Asia, Africa and the Middle
East. UNWTO forecasts international tourist arrivals to grow by 3% to 4% in 2010.

2010 Emerging destinations lead recovery
According to the April Interim Update of the UNWTO World Tourism Barometer, international tourist arrivals are estimated to have increased by 7%
in the first two months of 2010. This follows the upturn already registered in the last quarter of 2009 when arrivals grew by 2% after 14 consecutive
months of negative results. Though data for March is still limited, countries with data already reported confirm that this positive trend is set to
continue.
Growth was positive in all world regions during the first two months of 2010 led by Asia and the Pacific (+10%) and Africa (+7%). Information for the
three countries of the Middle East that have reported results so far also point to a strong rebound in the region, though, compared to very subdued
first months of 2009. The pace of growth was slower in Europe (+3%) and in the Americas (+3%), the two regions hardest hit by the global crisis and
where economic recovery is proving to be comparatively weaker.

A large number of countries around the world reported positive results in the first months of 2010. Of the 77 destinations reporting data for this
period, 60 showed positive figures, of which 24 posted double-digit growth including Estonia, Israel, Hong Kong (China), Macao (China), Japan,
Taiwan (pr. of China), Indonesia, Singapore, Vietnam, Guam, India, Nepal, Sri Lanka, US Virgin Islands, Nicaragua, Ecuador, Kenya, Seychelles,
Morocco, Egypt and Saudi Arabia.

Though there is a clear improvement on the negative results of 2009, this growth must be considered with caution as it compares with a particularly
weak period of 2009 the worst months of the global economic crisis. On the whole, international tourist arrivals totaled 119 million during the first
two months of 2010, up 7% on 2009 but still 2% below the value of the record year of 2008.

2010 forecast not affected by recent air traffic disruption
UNWTO forecasts international tourist arrivals to grow by 3% to 4% in 2010.
This outlook has not been altered by the recent air traffic disruption in European airspace. Although impacting very seriously on travellers, specific
destinations and companies, in particular airlines, airports and tour operators, UNWTO estimates that the closure of a major part of European
airspace between 15 and 20 April might have caused a loss of less than half a per cent of the yearly volume of international tourist arrivals in Europe
and 0.3% of the total count for the world.

Nevertheless, while the positive trend registered in the first months of 2010 reflects improved economic conditions, UNWTO warns that many
challenges remain.

Although economic results have improved significantly in recent months with a positive impact on tourism demand we must remain cautious as
many factors can still jeopardize the pace of recovery, said UNWTO Secretary-General, Taleb Rifai today in Sofia, Bulgaria, at the opening of the
UNWTO Seminar on Tourism Governance In Times Of Crisis: Conjunctural and Structural Policies. The economic recovery is being driven mainly
by emerging economies while growth is still sluggish in most advanced ones. At the same time, increasing unemployment levels in major tourism
source markets is a cause of concern, he added.

2009 International tourism receipts down by 6% to US$ 852 billion
In 2009, international tourism receipts are estimated to have reached US$ 852 billion worldwide ( 611 billion), down from US$ 942 billion ( 641
billion) in the previous year. In real terms (adjusted for exchange rate fluctuations and inflation) international tourism receipts decreased by 6% as


193
compared to a 4% decline in arrivals, showing the close relation between both indicators. Experience suggests that in times of crisis revenues tend
to be more affected than arrivals as was the case for the year 2009.

Source: WTO http://www.unwto.org/media/news/en/press_det.php?id=5912&idioma=E

Photo Gallery

Private road leading up to the Botanic Country Resort, sign board at the end of the road, Tunguu, Zanzibar


194

Botanic Country Resort, Entrance Viewed from inside Taarab Square, Water Tower and Toilets including staff space is available in the building with
entrance looking down straight our down our main road to the main road.


195

Taarab Square with Dance Floor, Bar and Stage. Bakery is already standing and other infrastructure.


196

Shop Structures in the Taarab Square are already standing and interested clients have already enquired for space.


197

Botanic Country House on the separate front plot, call it the managers house, been used currently as a guest house with rooms available.


198

Botanic Country Resort, Kipepeo Bar and Restaurant area at the back of Taarab Square already rented out to a local business man.


199

Taarab Square Bar overlooking Dance Floor towards the shop, the area for entertainment here alone can take 1000+ people.

Short clip below showing the Botanic Resort in November 2011, Eid celebrations with 2 local discos playing.

http://youtu.be/gzhUpFdX6LM

http://www.youtube.com/watch?v=gzhUpFdX6LM&list=UUVF3Ep09XpAMEWFz6NjHtSw&index=1&feature=plcp

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