19 Imanov Street, Business Center 'Alma-Ata', office 502,

010000 Astana Kazakhstan

Telephone: +7 (7172) 78 71 77;
Fax: +7 (7172) 78 71 75
Web-site: www.burabaymythhotel.hotelfoss.com

BURABAY MYTH HOTEL

Enjoy your stay!

Business Plan by: Akmaral Smagulova

Dinara Abrakhmanova
Sholpan Barabayeva
Zhanar Muratbekova

Table of Contents
I.

Executive summary

II.

Company Description 6

III.

Industry Analysis

Industry Size, Growth Rate and Sales Projections 9

Industry structure
IV.

10

Market Analysis 11

Market Segmentation and Target Market Selection 12

Buyer Behavior

13

Competitor Analysis
V.

14

Marketing Plan 16

Overall Marketing Strategy 17

Pricing Strategy 18
Sales Process 20
VI.

Management team and Company Structure 22

Management Team

22

Other Professionals 24
VII.

Operations Plan 29

Operations Model and Procedure

29

Description of Work Packages

30

Schedule and Timelines

30

Furniture & Equipment

31

VIII.

Financial Data

32

Sources and Uses of Funds Statement

Balance Sheet

32

33

Breakeven Analysis 34
Income Projections:
Five-Year Summary 35
Five-Year Summary with Investment
Cash Flow Projections

35

35

LIST OF APPENDICIES
Appendix 1 Burabay Myth Hotel ROSTER
Appendix2 Construction Plan and Timeline
Appendix 3 Hotel Furniture & Equipment
Appendix 4 Income Statement
Appendix 5 Cash flow
Appendix 6 Balance Sheet
Appendix 7 Capital Budgeting
Appendix 8 Feasibility Analysis Questions

I.

EXECUTIVE SUMMARY

Introduction
The modern leisure tourism industry in Kazakhstan is based on the unique natural and cultural
potential of the country. Tourism is one of the most dynamically developing industries in the
country and is providing a high return on investment. The number of arrivals increased significantly
over the review period, due to the fact that for most Europeans Nomad Kazakh culture is exotic,
while the natural environment is unique. Our company is willing to be the first in bringing
challenges to current hospitality industry in Kazakhstan through providing themed rooms that have
not yet exist in Kazakhstan and Burabay accordingly.
3

Company description
Our company name is the same as hotels name Burabay Myth. There are a lot of legends and myth
about Burabay, for that reason we have chosen Burabay Myth LLP name. Burabay Myth LLP is
proposing to operate 3 floor hotel of approximately 800 sq2, mostly for couples and families, in
Burabay Recreational Area near to Astana city, Kazakhstan. The hotel will be constructed near the
lake Burabay where is available land for operating business. The hotel will be unique from other
hotel around through providing adventurous rooms for guests. Burabay Myth hotel will offer 30
rooms of 10 different themes for couples and families. The hotel will provide double and triple
rooms with buffet breakfast service. The 100 m2 restaurant will be available for banquets. The hotel
will offer the following themed rooms and services:
- Ancient Egypt room.
- Cartoon room.
- Down & Up room.
- Futuristic room.
- Jungle room
- Kazakh National room.
- Prison room.
- Romantic room.
- Swiss Chalet room.
- Vampire room.
- Buffet breakfast.
- Banquet
- Parking
- Cable TV
- Train station transfer
Industry Analysis
Quantitative data collection method was employed to conduct a survey among 100 Astana citizens.
As the result of survey most of them preferred to stay in themed room hotel because it sounded
something new for them and they wished to see such hotel in Burabay area. According to the
official statistics most customers for hotels in Almaty and Astana cities in Kazakhstan were business
people who prefer to stay in standard room. For that reason we have chosen Burabay area to provide
themed room hotel for families and couples who prefer to enjoy adventure during their vacation.
According to the Statistics Agency of Republic of Kazakhstan, last year overall volume of provided
services in tourism industry has made up 49,3 billion KZT (336 714 370.8198 USD).
In order to stimulate small and medium entrepreneurship in Burabay region, the government of
Republic of Kazakhstan developed Free Economic Zone Project which enables entrepreneurs to
have an opportunity of tax relief. In 2008, Regulation about Burabay Special Economic Zone was
approved by Republic of Kazakhstan President. This is a good opportunity to build a themed room
hotel in Burabay recreation zone. Our main competitive advantage is themed rooms which do not
exist in this area and overall in Kazakhstan. There are approximately 55 competitor hotels with
average price of $110 in Burabay recreation zone. The hotels are mainly resort hotels with medical
treatments.
Marketing plan
The main goal of Burabay Myth Hotels marketing strategy is to attract family tourists and couples
with average and high income, inbound and Russian tourists; and to build a good image of our hotel
in order to increase the customers. The main tourists in Burabay are local tourists, citizens from
nearby city Astana and Russia. According to official statistics, the number of local tourists in the
Burabay recreation zone was 55071 in 2010. It is 35% of total number of inbound tourists in 2010.
Local people and tourists form Astana visit the recreational area for 2-3 days, mainly on weekends.
By contrast, tourists from Russia stay longer, in average 10 days. The hotels points of
differentiation:
4

Our strategy emphasises delivery of unique service for guests, by offering the rooms
designed according to different themes
- The hotel is surrounded by beautiful mountains and lake in Burabay recreation zone; and
also there is well-developed infrastructure and transport system in the area.
- Highly skilled, friendly, respectful, polite and helpful staff creates home atmosphere for our
guests
- We aimed to build and develop the image as the best and unique themed hotel with high
quality of service in Burabay area for family and couple tourists
Management Team and Company Structure
Our team consists of four members who have hospitality and tourism background. General Manager
is Dinara Abdrakhmanova, Finance Manager is Sholpan Barabayeva, Marketing Manager is Zhanar
Muratbekova and HR Manager is Akmaral Smagulova. All the team members have a good
knowledge of Kazakhstan tourism and hospitality market and work experience at hotels. Good
knowledge of local market will enable us to successfully implement our project in Burabay.
Operations and Development Plan
Our company is planning to construct 3 floor hotel of approximately 800 sq2 in 1,5 year. Marketing
and HRM plans will be implemented in parallel with construction. The construction will cost
approximately $1, 000000 and other expenses for room design, marketing and recruitment and
training will make $1 947 389. Our company is planning to purchase Anand Reservation system
which costs $3 645. In future we are planning include discotheque to the hotel building. We have
also developed a sustainability plan for our project in order to contribute to ecological, economical
and social environment in Burabay recreation area.
Financial projections
The business plan includes five years income statements, balance sheets, and cash flows. The
payback period is projected to be no longer than 3 years. Net income for the first year of operation
is projected to be $465 473, and will grow in average 6% during 5 years. Cash flow is forecasted to
remain positive during the startup period of the company. Sales and occupancy rates were based on
the data provided in industry analysis section of this Business Plan Occupancy rate is subject to
seasonal deviation.
Funding Sought
Our company is seeking for the loan in amount of $1 363 372 to be paid within 10 years.

II.

COMPANY DESCRIPTION

Introduction
Burabay Myth Themed Room Hotel is proposing to operate 3 floor hotel of approximately 800 sq2,
mostly for couples and families, in Burabay Recreational Area near to Astana city, Kazakhstan. The
hotel will be unique from other hotel around through providing adventurous rooms for guests.
The company is located at 19, Imanova Str., Business Center 'Alma-Ata', 502 office, 010000 Astana
Kazakhstan,

Tel.:

007

(717)

2787177;

www.burabaymythhotel.wordpress.com
5

Fax.:

007

(717)

2787175,

Web-site:

The Company History

There are different legends in Burabay recreation zone that attracts local and foreign tourists. Nature
has generously scattered precious gifts from its mineral treasury around the Burabay area. Among
them there are so called Okzhetpes cliff ("Inaccessible even to Arrows") with a peak resembling an
elephant calf, and the Zhumbaktas cliff ("Riddle-stone") which is in the creek of the Bun
resembling a mysterious sphinx with severe fearless features.
There are 14 lakes on the territory of the park, each of which has an area of more than 1 km, and
there are a great many smaller lakes. The river network is sparse and consists only of small rivers,
springs and temporary channels. For that reason our company has chosen the name Burabay Myth.
Our company has found that there is no themed room hotel in this area. The nature and location has
a great potential to develop tourism and hospitality industry. Our company decided to use this
opportunity and build themed room hotel for couples and families. A feasibility analysis validated
the idea for themed room hotel in Burabay.
Mission Statement
The mission of Burabay Myth Themed Room hotel is to provide unique experience and personal
service for couples and families who seeks leisure and comfort in Burabay.
Tagline
The companys tagline is to make guests enjoy their stay. Staying in themed rooms will help guest
be part of adventure. They will be satisfied with the service coming from our heart.
http://gbk.kz/content/kazakhstan/kommercheskaya-nedvizhimost/kazakhstan-borovoe-akmolinskayaobl-2840000

Product and services

Burabay Myth hotel will offer 30 rooms of 10 different themes for couples and families. The hotel
will provide double and triple rooms with buffet breakfast service. 100 m2 restaurant will be
available for banquets.
Legal Status and Ownership
Burabay Myth is Limited Liability Partnership incorporated in Akmola region, Kazakhstan. It is
currently owned by management team. A detailed description is provided in Management Team
and Company Structure section of this business plan.
6

Feasibility Analysis
Quantitative data collection method was employed to conduct a survey among 100 Astana citizens.
As the result of survey most of them preferred to stay in themed room hotel because it sounded
something new for them and they wished to see such hotel in Burabay area. According to the
official statistics most customers for hotels in Almaty and Astana cities in Kazakhstan were business
people who prefer to stay in standard room. For that reason we have chosen Burabay area to provide
themed room hotel for families and couples who prefer to enjoy adventure during their vacation.

III.

INDUSTRY ANALYSIS
Table 1. Dynamics of tourist number served by tour agencies

Year

Jan-March

Jan-June

Jan-September

2007
2008
2009
2010
2011

88 916
75 372
44 619
70 505
77 029

232 554
198 005
132 127
181 354

401 470
354 098
263 107
336 753

person
Jan-December
541 930
473 947
347 413
459 337

Table 2. Tourists occupancy

quantity

Year

Jan-March

Jan-June

Jan-Sept

Jan-Dec

2007
2008
2009
2010
2011

373 864
416 066
347 670
383 695
563 684

835 623
877 621
715 141
841 642

1 371 665
1 353 372
1 126 588
1 916 297

1 964 907
1 801 087
1 544 506
2 548 868

Exhibit 1. Number of hotels in Akmola, Burabay region, Kazakhstan

Since 2003 in Akmola region number of hotels was raised up to 54, which means that during the 7
years they were increased up to 9 times. During this period investment to tourism industry was
increased to 42, 5% which comprises 67, 7 bln. KZT (462 384 643.0934 USD)

Exhibit 2.Number of tourists occupation in Akmola, Burabay region

Exhibit 3. Number of sold tourist vouchers

According to the Statistics Agency of Republic of Kazakhstan, in 2008 overall volume of provided
services in tourism industry has made up 49, 3 billion KZT (336 714 370.8198 USD).
In order to stimulate small and medium entrepreneurship in Burabay region, the government of
Republic of Kazakhstan (RK) developed Free Economic Zone Project which enables entrepreneurs
to have an opportunity of tax relief. In 2008, Regulation about Burabay Special Economic Zone
was approved by the RK President. Burabay Special Economic Zone will be regulated in
accordance with RK Special Economic Zones in Republic of Kazakhstan Law issued 06.07.2007

IV.

MARKET ANALYSIS

Target market segmentation

The Burabay Myth Hotels target is segmented as follows:
- Demographically: families, couples
- Geographically: inbound tourists form Astana city and outbound tourists from Russian towns such
as Omsk, Toms, Tobolsk.
The main tourists in Burabay resort are citizens from nearby Astana city, and Russia. According to
government statistics, the number of inbound tourists in the Burabay recreational zonet was 55071
in 2010. It is 35% of total number of inbound tourists in 2010.
The tourists from Astana visit the recreational area in average for 2-3 days, mainly on weekends.
By contrast, tourists from nearby Russian towns, namely Omsk, Tobolsk, Tomsk, stay longer, in
average 10 days. According to tourism statistics of Kazakhstan the percentage of Russian tourists is
10

33% and the rest 67% is figure of inbound tourists. The main targets of Burabay Myth hotel are
families and couples from Russian towns Omsk, Tomsk, and Tobolsk; and from nearby city Astana.

The inbound and Russian tourists

Local tourists

Russian tourists

Exhibit 4. The inbound and Russian tourists

The following factors influenced on the decision to select target market:

- Market research: The findings show that the main tourists in Burabay recreational zone are
Russian tourists from Tomsk, Omsk, and Tobolsk. In the article of Russian tourist since 1903 was
written about Burabay: There are no comfortable places; and prices are always high, even more
than in bigger cities. But people attracted by beautiful nature, fresh air, and to drink kumys, the
national Kazakh drink, which was very useful for health. That time in 1903 there were no hotels in
the area. But now there are many hotels in Burabay recreational zone and it is still popular to have
vacation in there. The other main tourists in the area are from nearby city Astana.
- The growth of family market: The family market is growing considerably. There is a tendency to
travel with children. The families are main targets in many hospitality related organisations.
- Preferences of couples and families: Based to questionnaire, we assume that couples and
families will be the main guests in the hotel. The analysis of buyers behaviour indicated that
families and couples tend to choose the hotels according to image and the safety and security level
in the hotel. The jungle, cartoon, up and down rooms will be enjoyable places to stay for
children and their parents. Furthermore, romantic rooms will be perfect for couples.
- The ability to spend money: People with average and higher tend to spend more money on
vacation. Furthermore, the increase in salaries is favourable trend for hotel industry.
The target market size
The themed hotel will be opened in Burabay recreational zone. The process of estimating target
market size included following stages:

11

1st stage: To identify the numbers of local and Russian tourists in Burabay recreational zone. The
figures of tourists from Astana is 67% and for Russian tourists 33%. The number of inbound
tourists is 28667 than the number of tourists from Russia which is 14333. According to government
statistic agency the number of tourists in Burabay resort increased significantly in 2010 from 18000
to 43000.
50000
45000
40000
35000
30000
25000
20000
15000
10000
5000
0
38717

39082

39447

39813

40178

40543

Exhibit 5. The number of visitors in Burabay recreational zone

2nd stage: To identify the number of couple and family tourists in Burabay recreational zone.
According to tourism statistics of Kazakhstan the 80% of tourists in Burabay recreational zone were
served in double and triple rooms. Therefore we assume that 70% of tourists were families and
couples. So, the total number of couple and family tourists is 30100.
3rd stage: To identify the number of total size (in dollars) of Burabay Myth Hotel target market for
2010.
The average price of hotels in the area is 55$ per one person. The 30100 people (the total number
of couple and family tourists in Burabay recreational zone for one year)$55 per person=$1,656m
at 100 % occupancy
The additional source of income in the hotel is restaurant:
There are 70 seats in the restaurant. The average price for lunch and dinner in total is $40 per
person. 70(total number of seats)365(days in a year)$40=$1,022m of additional revenue at 100%
occupancy rate.
The total size of Burabay Myth hotel is $2,678m at 100% of occupancy.
4th stage: To identify the overall target market size (in dollars) of Burabay Myth hotel for 2013,
2014, 2015, 2016, and 2017.
Acoording to Industry analysis sales will increase in averag for 6%.
2013 2,834m
12

2014 3,061m
2015 3,233m
2016 3,570m
2017 3,855m
Consumer behaviour analysis
These factors influences the buying decision of target market of Burabay Myth hotel
- Motivation. According to survey conducted by our hotel the family and couples will choose
between 2 hotels with the same prices to stay in themed hotel. Because guests in our hotel can learn
about other cultures through our rooms designed in different cultural themes and, also through
Kazak, Swiss, Egyptian cuisines offered in our restaurants. According to survey, families tend to
choose the hotels and entertainment which will their children prefer. We also surveyed children for
preference in design of rooms; the most popular were cartoon, prison, up and down, and jungle
rooms.
- Location. Family tourists and couples prefer to spend their vacation apart from the big cities, in
peaceful places with beautiful nature and fresh air. Also, the customers prefer to stay in places with
well-developed infrastructure.
- Level of income. The level of income affects the buying decision of our customers. According
to online survey conducted by Wageindicator organisation in CIS in 2010, the percentage of
inbound tourists was only 7, 26% of 975 respondents in Kazakhstan. While in Russia the percentage
of outbound tourists was 9, 82%.

Outbound tourists
Inbound tourists
At summer house
At home
nowhere
other variants

Exhibit 6. The percentage of money spent on vacation by Kazakhstan people

- Facilities: The more facilities are offered the more advantages have the hotels. Burabay Myth
hotel offer free internet, parking zone, the restaurant services, and bar.

13

- Safety and security. It is proved that families with children and couples are more concerned
with the safety and security issues. Therefore we provide high level of security for our guests.
- Image. Families with children tend to choose the hotel by image and word-of-mouth referrals.
The hotel and its rooms should be clean, and to have image as a calm, comfortable with high level
of service.
- The service quality. The tourists choose the hotels according to its level of quality. Burabay
Myth hotel provides a high quality of service.
- The furnishing and design. According to the questionnaire conducted by Burabay Myth hotel,
the furnishing and design of rooms play important role in buying decision. The furniture and rooms
should be new and well-designed.
Competitor analysis
Direct competitors
There are more than 80 hotels which include the hotels with medical treatments, with capacity to
offer accommodation for 9000 tourists. The types of hotels in Burabay recreational zone:
- 65 hotels with medical treatments, including large hotels.
- 5 hotels with 3 stars, which includes the hotel Zhumbaktas, Samal, Zelenyi Bor
- 10 small-sized hotels.
There are no themed hotels in Burabay recreational zone. The hotels Zhumbaktas and Zelenyi
Bor located near the lake and have own beaches. The hotel Samal located in 15 min by foot from
the lake. These hotels are popular and have high occupancy rate.
Indirect competitors
The indirect competitors of Burabya Myth themed hotel are agencies which offer the apartments
and small rental houses for inexpensive prices compared to hotels. The price to rent apartment or
house for 2 persons per one night is $68.
Future competitors
The hotel industry is growing as estimated in industry analysis. There are new 20 hotels are under
construction this year with the capacity of more than 900 people, including the three hotels with 5
stars. In order to compete with new hotels Burabay Myth hotel is building image as the best hotel
for families and couples with the high quality of service. Also the hotel aims to attract new and
retain existing customers.
Table 3. Competitive analysis table
The competitive points

Burabay Myth

Zhumbaktas hotel

14

Samal hotel

Zelelnyi Bor

Location
Design of rooms
Service
Price
Additional facilities
Variety of food

Hotel
excellent
excellent
excellent
similar
excellent
excellent

excellent
good
satisfactory
similar
excellent
good

good
good
good
similar
excellent
good

excellent
satisfactory
satisfactory
similar
excellent
good

Conclusion
The table indicates that Burabay Myth hotel is similar with prices, location, additional facilities
with other hotels in the area. According to complains of tourists written in the internet the level of
service is low in many hotels of Burabay recreational zone. The competitive advantage of the
Burabay Myth hotel is the unique design of rooms, high quality of service and well-trained staff,
and also the different cuisines offered in the restaurant of the hotel.

V.

MARKETING PLAN

The main goal of Burabay Myth Hotels marketing strategy is to attract family and couple tourists,
inbound tourists from nearby city Astana and Russian tourists from Omsk, Tomsk and Tobolsk; and
to build an image as the best hotel for families and couples with high quality of service. Our
strategy emphasises delivery of unique service for guests, by offering the rooms designed according
to different themes. We aimed to evoke the word-of-mouth referrals, to leave positive impression on
our guests by providing high quality service with reasonable prices. The objectives of the strategy
are:
1.
2.
3.
4.
5.

To offer the rooms and food designed according to different themes.

To promote the hotel on mass media such as radio, local and Russian newspapers, internet.
To reach the average occupancy rate of 80% for whole year in the hotel by 2015.
To retain the customers by offering high quality service and reasonable pricing.
To create loyalty programmes for our customers.
15

The responsibility of all our team, which is working in the hotel, is to meet needs and exceed
expectations of our guests. Furthermore we are committed to make the stay of our guests enjoyable
in the hotel. Moreover, we aimed to increase the interest of our guests in different cultures and to
make aware of cuisines and national designs of rooms of Kazakh, Swiss, Egyptian cultures. Also,
we offer to families with children rooms designed as a cartoon, jungle and other in order to make
their stay interesting. And we believe that couples will find our rooms romantic and best place to
stay. We have rooms designed in romantic style with hearts and angels, and also there are cards with
the words of love in different languages.
The strategy of the hotel includes also the care of its employees. The personnel in the hotel is
offered the career opportunities, trainings, and social benefits such as insurance. The happy
employees make happy the guests. Therefore, it is vital to take care of staff in order to provide high
quality of service.
Positioning
Nowadays guests are more saturated; they want more than just accommodation. Hence there is
increase in popularity of hotels which can clearly differentiate themselves from other hotels.
Burabay Myth Hotel is positioned as a themed hotel for families and couples, which is offering the
services with unique concept. The uniqueness of the hotel is based on providing rooms and food
designed according to different themes, for instance Egyptian, Kazakh, Swiss styles and others.

Points of differentiation:
- Our strategy emphasizes delivery of unique service by offering the rooms and food designed
according to 10 different themes. Furthermore, guests can learn about other cultures through rooms
which are designed in different cultural themes. Also, customers are offered national cuisine of
different cultures in our restaurant.
- The hotel faces the beautiful lake in the recreational resort Burabay. The hotel is surrounded by
beautiful mountains and lake. Moreover, there is well-developed infrastructure and transport system
in the area.
- We employ the people who are highly skilled, friendly, respectful, polite and helpful, who can
create home atmosphere for our guests. Our staff serves with a great care and will respond as fast as
possible to guests requests.
- We aimed to build and develop the image as the best and unique themed hotel with high quality of
service in Burabay area for family and couple tourists.
The positioning map shows the points of differentiation of Burabay Myth hotel
16

Almost all hotels have good location except Samal hotel. According to feedback of hotel
customers, peronnel is not friendly unqualified in Zelenyi Bor hotel. Whereas in Samal and
Okzhetpes hotels personnel are more friendly and effective. However, all hotels, excluding
Burabay Myth hotel, are weak in offering distinguished products such as rooms and food. They
offer simple table dot menu in their restaurants and old furnished rooms.
The Burabay Myth hotel offers rooms and food designed according to different themes, and also
the high quality of service. The staff in the hotel will be trained accordingly, and the quality of
service will be continuously maintained and improved. Moreover, Burabay Myth hotel provides
safety and security for families and couples, and for employees.
12
10
8
Burabay Myth hotel
Samal hotel

Okzhetpes hotel
Zelenyi Bor hotel

4
2
0
Rooms and food

Location

Staf

Image

Exhibit 7. Positioning map

The hotels positioning strategy emphasizes the high quality of service and a large care from the
personnel during the whole stay of guest.
Pricing strategy
According to market research the average prices of double and triple rooms offered by hotels in
Burabay recreational zone is $110 and $120. The Burabay Myth hotels pricing strategy is valuebased. The pricing policy is also based on the following criteria:
- The average price of direct competitors
- The `value for money in exchange to excellent quality of service, and for designed according to
different themes rooms, as a unique product in the area.
Table 4. Burabay Myth Hotel and Direct Competitors in the Burabay recreational area
Room types

Burabay Myth Hotel

Direct competitors in the

Double
Triple

$120
$180

Burabay recreational area

$110
$185

17

According to market research the number of customers in weekends is higher than on weekdays in
Burabay recreational zone. Therefore the prices for weekend are higher than on weekdays. Because
tour agencies are important for hotel as distribution channels, the rates for them are lower for $10$15. Also, there are discounts for group tourists because the profit perceived from them is higher.
Sell rate (changes
Room types
Double
Triple

Rate for tour agencies

according to demand)
$120
$180

Group rate

Weekend rate

and tour operators

$105
$115
$125
$170
$175
$190
Table 5. Rate scheme of Burabay Myth Hotel

So the pricing policy in the hotel is value-based and divided into 4 types of rates such as weekend,
rates for tour agencies, group rates and rack rates for weekdays. Also the prices are made according
to average competitors prices.
Promotional mix and sales
The hotel is aimed to open pre-opening office in the hotel. The pre-opening office will be located
in Astana city in business centre Alma-Ata.
Table 6. Pre-opening promotional activities
Brochures, maps with hotel logo
Billboards
Radio NS
Courier and Komsomolskaya Pravda newspapers
PR (sponsorship)
Training for employees
Creating website and technical support
Pre-opening ceremony
The total

$2000
$3084
$6755
$6504
$3000
$100
$4000
$5000
$31343

The budget of pre-opening office marketing activities is $31349. The office also will conduct the
pre-opening sales and recruiting procedures. The sales process includes different stages.
Stages of sales process
1. Searching

(or

The necessary activities for every stage

how - The website of the hotel in the internet

customers can find - Direct mailing to people form Astana and Russian towns such
the hotel)

as Toms, Omsk, and Tobolsk.

- The partnerships with big tour agencies, namely Otrar, Teztour, Kaz-tour, and with Russian tour agency Rivage.
- The advertisements on radio station and the newspapers.
- The brochures and maps with hotel logo.

18

2. The primary contact

- The personnel will be provided with information about the

hotel.
- Brochures and maps, newspapers and information on the
website will be given to the new employees.
- The personnel will receive the information packet about
Burabay Myth hotel

3. Seeking for potential - The staff is trained to determine potential clients which will
customers

be offered the brochures with pictures of rooms designed

differently and maps with logo of the hotel.

4. Sales presentation

- The banquet will be organised for tour agencies and

customers. The guests will be invited by phone. The brochures
will be given on the street and companies.
- The guests will be shown small video about Burabay Myth
hotel.
- The tour agencies will be offered tours in the hotel.
- The anonymous feedback will be received from the visitors.

5. The main objections - The trainings for staff include learning the different ways of
and concerns

meeting objectives.
- To maintain high occupancy of level by delivering high
quality of service.
- The pricing policy of the hotel is reasonable and value-based.

6. Closing the sale

- The personnel will be trained to answer the phone and to offer

the stay in the hotel for potential guests.

7. Additional actions

- The guests in the hotel will receive e-mail and the call from
our employees after their visit the hotel.
19

- The hotel will send different offers for customers on a weekly

basis by e-mail.
- The control of quality will be maintained through the control
system and guests feedback.
Promotional Mix
Burabay Myth Hotel will hold a presentation at the opening and invite the representatives from tour
agencies and future guests. The Burabay Myth hotel aimed to expand the distribution channels by
building partnerships with big tour agencies, namely Otrar, Tez-tour, Kaz-tour, and with
Russian tour agency Rivage. These tour agencies will attract tourists from Astana and Russian
towns. Therefore the special rates created for tour agencies. The cooperation with tour agencies will
be beneficial in a long-term perspective for hotel.
Nowadays the internet is a key driver for almost all businesses especially for hotel industry.
Therefore the hotel opened its own website. There are many photos of themed rooms, videos, and a
plenty of information about the location, hotel facilities and others. Our website is the hotels face.
And it is very important for hotel to design the website, because almost everyone uses the internet
in choosing the hotel. The hotel aimed to create website about hotel with online booking facilities
and also to use the social networking (create page in facebook, vk.com and to create social
blogs). The website will be updated and technically supported.
The Burabay Myth hotel will publish numerous copies of brochures and maps with its logo. The
brochures and maps will include the contact information of the hotel and will be given to every
guest. Furthermore, the paper advertisements will be necessary at different events in which hotel
will participate.
It is vital to build public relationships, to organise events. The Burabay Myth hotel will organise
several events. The hotel will sponsor the national traditional holiday Kazakh New Year on 22 nd of
March in Astana city, in order to assess free publicity and to raise awareness about existence of
themed hotel among families and couples.
The hotel will be advertised on the Russian radio station NS. This radio is listened not only by
Russian people, but also people in Kazakhstan people listen to this radio while driving to the work
or somewhere else. Also, the hotel will advertise itself on the internal radio of the hotel.
The Courier newspaper is chosen, because it is daily free of charge newspaper in Kazakhstan. All
families receive this newspaper. Also the hotel put advertisements on the Russian newspaper

20

Komsomolskaya Pravda. The newspaper is very popular and well-known in Russia and in
Kazakhstan.
The external advertisement is used by Burabay Myth hotel. The billboards with picture and
information about hotel will be nearby city Astana. They will be located near the main road from
Astana to Burabay. We aimed to attract tourists to our hotel on the way to Burabay recreational
zone.
Table 7. The annual marketing budget

Brochures, maps with hotel logo

Billboards
Radio NS
Courier and Komsomolskaya Pravda newspapers
PR (sponsorship)
Training for employees
Technical support for website
Total

21

$2000
$3084
$6755
$6504
$3000
$100
$1657
$12000

VI.

MANAGEMENT TEAM & COMPANY STRUCTURE

Introduction
Limited Liability Partnership Burabay Myth management philosophy focuses on trust,
responsibility, teamwork and service quality, providing with the sustainable environment for the
companys employees and its members. Employees will be selected through engagement in best
practice human resource management that enables to provide high service and quality professional
expertise.
Management Team and Company Structure
Company consists of cofounders that will manage themselves this business with leadership and vast
experience, as well as educational background which represented in their masters degree in
International Hotel and Tourism Management gained in Switzerland. Other professionals are the
Hotel personnel which will be hired on the competitive level within Kazakhstan. The following
description represents responsibilities and duties of each member as well as roster wage and salaries
indicated in the Appendix 1 of the Business Plan.
1. Cofounders
Abdrakhmanova Dinara, Cofounder and General Manager, age 26
General Manager is responsible for the management of hotels whole strategy with an overseeing
accountability for budgeting and financial management, planning organizing and directing all hotel
services including guest satisfaction and staff development within established quality standards.
Dinara started to work in the tourism industry with the opening agency of estate renting for rest in
Burabay region, Kazakhstan since 2005 in parallel with work experience she has gained in
Internationally

Hotels, namely as Radisson SAS, Hilton and Hyatt. Later her owned estates

comprised in total 10 apartments in different places among Burabay recreational region. Despite the
own estates, Dinara has dreamed to gain masters degree in Switzerland Cesar Ritz Colleges, to
have deep knowledge in the Hospitality and Tourism industry, after her completed bachelor at
International Kazakh-Turkish University, Kazakhstan and Oxford House College in UK. Due to
the limited services of her estates except offering to live there on weekends, she decided to sell her
estates and build hotel with full range of services for tourists as she already knows this region well
and its seasonality factors which she could use to attract more clients.
Barabayeva Sholpan, Cofounder and FO, age 26
Financial Manager is responsible for the management of finance, accounting and operational
analysis of the hotel business strategic growth and development. Sholpan has worked as an advisory
consultant in the hospitality accounting before joining to Dinaras agency. She was responsible to
22

accountancy and property development that helped to raise agencys estates capital. Sholpan has
experienced to work in government organization of International Project Development that opens
Free Economic Zones (FEZ) to new businesses, and with the knowledge of financial project
development concerning FEZ to which Burabay region belongs, Sholpan sees raise of capital while
she has decided to invest to the new business that ultimately will be profitable regarding to hotel
budget estimations. She has earned her bachelor degree in accounting in the Kazakh State
University of Kazakhstan as well as completed masters degree in the Cesar Ritz Colleges of
Switzerland.
Muratbekova Zhanar, Marketing and Sales Manager, age 23
Marketing and Sales Manager is responsible for the creating and overseeing Hotel businesss
marketing plans and managing sales as well as to maximize hotel revenue among market segments,
specifically conducts sales calls with potential clients and advertising placements. Zhanar has
earned her bachelor of Tourism Management in Transport and Communication Academy in excapital of Kazakhstan - Almaty city.

She has experienced in the positions as a restaurant

administrator and sales manager in 5*** star Hotels such as Hyatt Regency, Intercontinental
Almaty and Rixos in Almaty, Kazakhstan. In continuation to her career development
perspectives, she decided to change her place of living to the nowadays capital Astana city and join
to one of the fast growing Small Medium Enterprises as Burabay Myth Company. Zhanar is also
completed her masters degree in the Cesar Ritz Colleges of Switzerland.
Smagulova Akmaral, Human Resource Manager and COO, age 28
Burabay Myth LLP has decided to choose professional who can handle with both positions as
Operation & Human Resource Manager in one face and which is responsible for the creation and
administrating models for operational excellence, developing criteria and guidelines for the hotels
hiring practices as well as selecting, training of Hotel staff along with day-to-day assessment of
Hotels operational programs. Akmaral has balanced combination of executive leadership and
advanced analytical understanding to successfully manage hotel operations through innovative IT
systems. She graduated Kazakh-American University in ex-capital city Almaty, 2004, and received
her bachelor degree in Tourism and Hotel Administration. Akmaral has 6 years experience in
different internationally level companies and was responsible mostly as a manager of Human
Resource Policies and development, managing more than 50 people and elaboration of labor
agreements, roster, rules and regulations as well as safety of an employee on the work place. She
decided to share and to contribute her experience with the knowledge to the Burabay Myth LLP
management that dedicated to earn high quality level in Hospitality and Tourism. Akmaral has
completed her masters degree in the same qualification as all members of management team.

23

Table 8. LLP Burabay Myth Ownership and Compensation Structure

Name

Position

Base

Percent

Personal

Compensati

Ownership

investment in

on (Annual)
$17,532

in Company
12,5%

Company
$ 243,423

Dinara

Cofounder and GM

Abdrakhmanova
Sholpan Barabayeva
Zhanar Muratbekova

Co-founder and FM
$9,372
Sales & Marketing $9,372

12,5%
2,5%

$243,423
$48,685

Akmaral Smagulova

Manager
HR&

2.5%

$48,685

70%
100%

$584,217

Bank Loan
TOTAL

Operation $9,372

Manager
--

-$45,648

2. Burabay Myth Hotels Professionals

The significant gaps exist in the Hotels professionals that will be hired for the departments of Front
Office, Food and Beverage, Housekeeping and Maintenance. Hotel Staff recruitment will be filled
within one year before the completion of Hotel construction to July, 2013. Our HR Management
seeks for the sustainable development of the Hotel staff and issued Policy of training and
maintaining workers on two shifts as permanent and part-time staff for the low seasonality factors
that we have in the region as well as counting the risks of HR management.
In the following Table 9 is shown for the filled and vacant positions as well as their basic
qualifications and job descriptions in the Exhibit 8.
Table 9. Skills and Qualifications Profile
#

Management Team

Quantity

Executive

Finance &

Sales

Leadership

Accounting

marketing

&

Operations
HR/recruiting,
IT Manager

1
2
3
4
#

GM
FM
SM
HRM
Hotel Staff

Front Office
5
Receptionist
Food & Beverage
6
Restaurant Administrator
7
Waiter/Waitress
8
Chef
9
Dishwasher
Housekeeping
10 Maid
11 Janitor
12 Driver
TOTAL

1
1
1
1
Quantity

X
X
X
Reservation

Cooking &

Cleaning

Banqueting

Maintenance

0
0
0

&

X
Transportation

1
5
1
1

3
1
2
22

0
0
0

24

X Position filled, O Position vacant

Exhibit 8. Scheme of the Burabay Myth LLP Structure

General Manager

Human Resource &Operation Manager

Finance manager /Accountant Sales & Marketing Manager
IT Manger

Food & Beverage

Front Office

Housekeeping
Chef

Permanent Receptionist 2

Permanent Maid 2
Restaurant

Part-time Receptionist 2

Administrator

Permanent Waiter Waitress 3

Part-time Maid 1

Part-time
Plumber/Janitor 1

Part-time Waiter/Waitress 2

Job Description
Dishwasher

Front Office Receptionist (permanent & part-time)

Responsible for the reception area of the Hotel, greeting of all guests, answering phone calls,
assisting guests with questions regarding Hotel services and products, booking all appointments and
checking the guest into the Reservation Computer System and charging for services performed.
Duties& Responsibilities:
-

Be on time for the determined shift, acknowledge and greet everyone who enters into the

Hotel and properly perform Standard Operating procedure of reception area.

Provide detailed description of services in the Hotel as well as facilities and actively
promote them with maintaining eye contact when addressing external and internal guests,
provide appropriate and immediate responses to all guests ensuing complete guest

satisfaction.
Utilize Reservation Computer System with skill and proficiency, maintain a clean, safe,
fully stocked and well organized area, communicate to management any and all occurrences
involving staff or guests in the reception area that require attention.

Position Requirements:
25

Must have bachelor degree with multilingual language knowledge (English is compulsory)
Detail-oriented, possess basic math, excellent customer service, communication and
computer skills and work experience in tourism will be appreciated.

Permanent full time schedule is 12 hours, 4 days = $ 450 (monthly)

Part time schedule is 12 hours, 3 days = $ 204 (monthly)
Restaurant Administrator (permanent)
Duties& Responsibilities:
Responsible for the supervising and organizing the F&B function within the Hotel, maintains high
standards of quality, service and maximize profits of banqueting services, designs menu and yield
management, oversees departmental administration and implementation of effective control.
Position Requirements:
-

Must have a bachelor degree in economic & finance with multilingual language knowledge
Must have an experience in F&B of the Hotel departments, Banquets, Lounge/Bar and
within catering services

Permanent full time schedule is 8 hours, 6 days = $ 497 (monthly)

Chef Restaurant
Duties& Responsibilities:
Responsible for the performance of variety culinary dishes and execution range of duties in the
kitchen area. Ensure the quality of dishes, timely serving of meal and handle with any problems that
rose on food items.
Position Requirements:
-

Must have an education in culinary of arts and being creative.

Must have an experience of 3 years within F&B department and restaurant kitchens.

Permanent full time schedule is 8 hours, 6 days = $ 600 (monthly)

Waiter/Waitress
Duties& Responsibilities:
Responsible for the maintaining high standards of professional ethics, emphasize high image for the
hotel and operation with maximum transparency. He/she is responsible of several tables in the
service area, ensue the guest satisfaction; to achieve daily planning through the activities received,
know menu in detail, take F&B orders as per Hotel standard, delivers food from kitchen and
beverages from the bars, cleaning tables. Has to report administrator if any misunderstanding
situations problems with guest or staff.
Position Requirements:
26

Secondary education (bachelor preferable)

Attending pre-meal briefings, listen instructions and ability to learn new skills.
Self hygiene is well, tidy, groomed, disciplined and honest at all times.

Permanent full time schedule is 8 hours, 6 days = $ 352 (monthly)

Part time schedule is 8 hours, 3 days = $ 204 (monthly)
Dishwasher
Duties& Responsibilities:
Responsible for the cleaning and dry dishes, run dishwasher, stack and organize dishes for esy
retrieval, clean ovens, taking out garbage, review inventory and maintain hygiene.
Position Requirements:
-

Secondary education level and willingness to learn

Being ready to perform food preparation tasks, such as chopping vegetables and stirring
sauces beyond the responsibilities mentioned above.

Permanent full time schedule is 8 hours, 6 days = $ 204 (monthly)

Housekeeping Maid
Duties& Responsibilities:
Responsible for the cleaning of rooms, lobbies and lounges of the hotel, restrooms and corridors,
stairways and other work areas, clean carpets, empty wastebaskets, carry linens, towels, toilet items
with use of wheeled carts ; purchase and order groceries and house hold supplies to the kitchen, and
record expenditures. Keep storage areas clean and tidy, answer telephones and doorbells.
Position Requirements:
-

Secondary education level and willingness to learn

Creative ideas to arrange banquet decorations, prepare rooms for meetings, with media
equipments, and furniture for social or business functions

Permanent full time schedule is 8 hours, 6 days = $ 204 (monthly)

Housekeeping Janitor
Duties& Responsibilities:
Responsible for the move and arrange furniture, remove light bulbs, removes debris from the
driveways and garages, make adjustments and minor repairs to heating, cooling and ventilating and
electrical system, remove snow from sidewalks, driveways and parking areas, spray insecticides to
prevent insect and rodents infestigation during summer times.
Position Requirements:
-

Secondary level technical education

Skillful hands
27

Permanent full time schedule is 8 hours, 3 days = $ 150 (monthly)

Driver
Duties& Responsibilities: Responsible for drive minibus, and transportation of guests as well as
company personnel, safe driving practices. Car repairmen skills will be appreciated and vehicles
maintenance.
Position Requirements:
-

Secondary education level, driving experience more than 10 years.

CDL Commercial Driver License is required and displaying positive attitude.

Permanent full time schedule is 12 hours, 6 days = $ 352 (monthly)

VII.

OPERATION PLAN

Introduction
28

This document sets out an operating plan for the first 2 years of the Burabay Myth LLP that will be
monitored and controlled. The Operational Plan is focused on two main areas, implementation and
development, at the end of each year it should set out objectives to the following year. The
operating model and procedures for the Burabay Myth LLP are explained in the following sections.
General Approach to Operations and Resposibilities
Operation plan is divided into several tasks, responsible persons and activities named as
workpackages WP; each WP has objectives and timelines.
Management

Team Task ID

Members in Charge
General Manager

Tasks/ Activities

WP1 work package

Overall

Timelines

Project October

General Manager, Finance WP2 work package

Management Plan
Construction

Manager,

Budget Plan of the

Sales

&

-2013
& 2011- 2013

Marketing Manager, HR&

Hotel

Operations Manager
Sales & Marketing Manager WP3 work package

Marketing Plan of the January 2012

HR& Operations Manager

WP4 work package

Hotel
HR Recruiting Plan of January 2013

WP5 work package

the Hotel
Overall Budget Plan October 2011

Finance Manager

of

the

Hotel

Sustainability Plan
Description of WP
WP1 Overall Project Management Plan
Implementation Concept of the Hotel
Development Steer and Coordination Projects, Monitoring
Aim To start up the hotel project and discuss hotel concept
WP2 Construction Plan of the Hotel
(1)
(2)
(3)
(4)
(5)

Formalities
Land Issues
Design and development
Room design
Furniture and facilities purchase

(See Appendix 2)

29

&

2011

WP3 Marketing Plan of the Hotel

Implementation Market Research, Publicity, Mass media
Development Market Startegy and Results
Aim - compare and determine prices and evaluate the current market situation; cooperation with
tour agencies; to attract the inbound and outbound tourists.
WP4 - HR Recruiting Plan of the Hotel
Implementation - HR Program Definition, Job specification, recruiting process
Development Sustainability issues in HRM
Aim - To create Sustainable HR management policy & regulation program for the Hotel, to identify
Hotel Staff, development of job specifications, wages &salary system, to schedule and start
recruiting process timelines of the hotel; to train staff & make outsourcing decisions to meet
specifications according to the Sustainable HR policy & regulation program of the Hotel.
WP5 - Overall Budget Plan of the Hotel & Sustainability Plan
Implementation Overall Budget (See Financial part of the Business Plan)
Development Research sustainability in Burabay area, Strategy for sustainability (economical,
social, and ecological), Energy saving plan, Procurement for sustainability facilities and
equipments.
Aim - Provide sustainable environment for operation of the hotel
Schedule and timeliness
#

Task

Resourc

Start

End

Dur.

Date

Date

(Mo
nth)

2011
Year 0
Q1

WP1

GM

01/10/11

30/12/14

39

WP2

S&MM

01/01/12

30/06/13

18

WP3

GM/FM

01/10/11

30/06/13

21

WP4

HRM

01/01/12

30/06/13

18

WP5

FM

01/10/11

30/08/12

12

2012

2013

Year 1

Q2

Q1

2014

Year 2
Q

Q3

Q4

Q1

Year 3
Q2

Q3

Operation Plan objectives should be completed in 1, 5 years. Starting date is October 2011.
Opeartion Plan Timeline Chart

30

Q4

Q1

Q2

Q3

Q4

Furniture and Equipment

#
1
2
3
4
5

Item
Hotel Furniture
Hotel Computers
Hotel Reservation Systems
Kitchen Equipment
Vehicles
Total

Methods to obtain
Purchase
Purchase
Purchase
Purchase
Purchase

Cost
$695,000
$5,000
$3,465
$30,000
$30,000
$763,465

(See Appendix 3)
1. Hotel Furniture will be purchased totally from Urumqi city, China and delivered before 3 month of
the Hotel opening date.
2. Hotel Computers will be purchased in total quantity 5, from the local places and installed before 6
month of the Hotel opening date.
3. Hotel Reservation System Anand System Inc will be installed before 6 month of the Hotel
opening date, and will be integrated through the hotel own website and with the Global Distribution
System support.
4. Kitchen Equipment will be purchased from Urumqi city, China and delivered before 3 month of the
Hotel opening date.
5. Hotel will be purchased two minibuses from the local auto-stores in Kazakhstan

VIII. FINANCIAL DATA

31

Sources of funds and funds statement

Total funds required to start the business is $ 1 947 389, including $ 20, 000 unforeseen expenses during first
year of operations. This amount considers purchase of land, cost of constructing the building of the hotel,
preopening marketing costs (see annual marketing budget in Marketing Plan section), internal works, fixtures
and fittings, regulatory arrangements, equipment for restaurants kitchen, vehicles for transportation (AstanaBurabay), purchase of hotel reservation software (Anand reservation system).

Source of Funds
Management team investment
Line of credit with bank

1.

$ 584, 217
$1, 363 172

Use of Funds
land purchase
construction costs
marketing startup costs
decoration, furnishing
regulatory arrangements
kitchen equipment
vehicles (2)
headhunting and recruitment
"Anand" hotel reservation system
Total
unforseen expenses
Total investment needed

$ 50 000
$ 1 000 000
$ 31 343
$ 700 000
$ 3 000
$ 30 000
$ 30 000
$ 79 581
$ 3 465
1 927 389
20 000
1 947 389

General assumptions
1) We assume that overall tourism sector of Kazakhstan and Burabay region in particular will continue to
develop, and number of tourists will grow, based on sources indicated in the Industry Analysis section of this
Business Plan.
2) Access to equity capital in the amount of $ 584 217 is assumed to be available, consistent with the
Sources and Uses of Funds statement of this Business Plan.
2. Financial assumptions
1. Sales forecast is based on Industry Analysis section of this Business Plan, they are projected to increase
6% per year in average (second year 10%, third year 9%, fourth and fifth year 2%).
2. Occupancy rates are forecasted based on the data given in the Industry Analysis section of this Business
Plan, and average is expected to be: first year 49%, second year 54%, third year 59%, fourth year 60% and
fifth year 61% (see Income statement).
3. Cost of sales for F&B division is forecasted to be 40%, which is higher than industry average due to
additional cost of transportation to Burabay area.
4. We assume that our credit sales will constitute 30% of total sales and will take 1 month to collect.
32

5. Cost of employee benefits (accommodation and meal) is assumed to be included in the salary expenses.
6. Monthly marketing expenses are based on annual marketing budget described in Marketing Plan section
of this Business Plan.
7. Tax rate used is based on data of Ministry of Finance of Republic of Kazakhstan.
8. All operating expenses are expected to increase as per inflation rate 8% per year.

Pro Forma Income Statement

2013

2014

2015

2016

2017

occupancy average
Room Sales:
cash sales
credit sales
total room sales

49%

54%

59%

60%

61%

992 642
248 160
1 240 802

1 094 645
273 661
1 368 306

1 196 648
299 162
1 495 810

1 217 048
304 262
1 521 310

1 237 449
309 362
1 546 811

cost of F&B sales

gross margin

198 912
1 041 890

219 352
1 148 954

239 792
1 256 018

243 880
1 277 430

247 968
1 298 843

operating expenses:
payroll
marketing
laundry
insurance
depreciation
phone, internet
heating/electricity
total expenses

108 036
24 000
11 700
6 500
202 693
10 800
13 200
376 929

116 679
25 920
12 900
7 020
202 693
11 664
14 256
391 132

126 013
27 994
14 100
7 582
202 693
12 597
15 396
406 375

136 094
30 233
14 340
8 188
202 693
13 605
16 628
421 782

146 982
32 652
14 580
8 843
202 693
14 693
17 958
438 401

net profit before tax

tax (30%)
net profit after tax

664 961
199 488
465 473

757 822
227 347
530 476

849 643
254 893
594 750

855 649
254 893
598 954

860 442
258 132
602 309

Pro Forma BS

01.06.2013
year 0 start
of business

01.06.2014
end of year
1

33

01.06.2015
end of year
2

01.06.2016
end of year
3

01.06.2017
end of year
4

01.06.2018
end of year
5

ASSETS
Current assets:
Cash

20 000

564 886

1 205 576

1 982 863

2 781 493

3 583 578

23 824

25 990

28 156

28 589

29 022

6 500

7 020

7 582

8 188

8 843

20 000

595 210

1 238 586

2 018 600

2 818 270

3 621 444

1 000 000

950 000

900 000

850 000

800 000

750 000

700 000

560 000

420 000

280 000

140 000

Land

50 000

50 000

50 000

50 000

50 000

50 000

Equipment

30 000

24 000

18 000

12 000

6 000

3 465

2 772

2 079

1 386

693

30 000

24 000

18 000

12 000

6 000

1 813 465

1 610 772

1 408 079

1 205 386

1 002 693

800 000

2 205 982

2 646 665

3 223 986

3 820 963

4 421 444

Accounts payable

198 912

394 117

406 375

421 782

438 401

Tax payables

199 488

227 347

254 893

256 695

258 132

Accounts receivable
Prepaid expenses
Total current assets
Fixed assets*:
Building
furniture, fixtures and fittings

reservation system
vehicles
Total fixed assets
Other assets:
regulatory arrangements

3 000

Marketing expenses

31 343

HRM expenses

79 581

Total assets:
LIABILITIES AND
EQUITY

1 947 389

Current liabilities:

Short-term notes

584 217

Total current liabilities:

584 217

398 400

621 464

661 268

678 476

696 534

Long-term notes

1 363 172

1 343 543

1 160 332

977 122

793 912

610 701

Total long-term liabilities:

1 363 172

1 343 543

1 160 332

977 122

793 912

610 701

Retained earnings

464 039

864 869

1 585 596

2 348 576

3 114 209

Total equity

464 039

864 869

1 585 596

2 348 576

3 114 209

1 947 389

2 205 982

2 646 665

3 223 986

3 820 963

4 421 444

Long-term liabilities:

Equity:

Total Liabilities and Equity

*Depreciation rate used is straight line for equipment, furniture, fixtures and fittings, reservation
system (software), vehicles with service life of 5 years; land is not depreciated, building
depreciation is 50000 per year.

Pro Forma Cash Flow**

Sources of funds
sales cash

1 month of peak season (June)

June 2013

June 2014

June 2015

June 2016

147 275

155 939

164 602

166 335

34

June 2017
168 067

sales credit
total received

0
147 275

23 824
179 763

25 990
190 592

28 156
194 490

28 589
196 656

uses of funds
F&B purchased items
operating expenses
tax

29 512
31 934
102 710

31 248
33 102
109 540

32 984
34 354
116 290

33 331
35 619
116 690

33 678
36 984
116 997

total funds used

opening bank bal
net cash flow
closing bank bal

153 765
20 000
-6 490
13 510

164 019
664 342
15 744
680 086

174 319
1 395 345
16 273
1 411 617

176 938
2 190 622
17 552
2 208 174

179 611
2 991 836
17 045
3 008 880

**Cash flow is taken for one of the peak season months (June).

35