Project Proposal for Development of Eco Tourism

Venture at Sudugala Estate, Brae Group in

Reversturn,Matale District

Project Developer

Prime Way Logistics (Private) Limited

598, Mankada Road, Ihalabiyanwila, Kadawatha

Sri Lanka

94-77 251 2554

94-81-422 0554

fujitads55@gmail.com

Project Proposal for Development of Eco Tourism Venture for Prime Way Group 0
Contents

EXECUTIVE SUMMARY ....................................................................................................................................................................................3

Section One: Project Outline ...............................................................................................................................................................................4

1. Introduction.......................................................................................................................................................................................................4

1.1 Concept ......................................................................................................................................................................................................4

1.2 Potential of Eco Tourism Sector in Sri Lanka ......................................................................................................................................5

1.4 Wellness Tourism – Sri Lanka as a Wellness Tourism Hub ..............................................................................................................6

Section Two: The Project Description ...............................................................................................................................................................8

2.1 Project Location and site description ....................................................................................................................................................8

2.2 Geo Physical Characteristics ................................................................................................................................................................10

2.2.1 Unique Landscapes .......................................................................................................................................................................10

2.2.2 Rocks and Minerals .......................................................................................................................................................................10

2.2.3 Soils..................................................................................................................................................................................................10

2.2.4 Weather and Climatic Conditions ..............................................................................................................................................10

2.2.5 Drainage .........................................................................................................................................................................................11

2.3 Market Analysis......................................................................................................................................................................................12

2.3.1 Kandy and Matale as a Tourist Destination .............................................................................................................................12

2.3.1 Target Market Segment ................................................................................................................................................................12

2.3.2 Target Market Size ........................................................................................................................................................................12

2.3.3 Sales and Marketing .....................................................................................................................................................................13

2.4 Business Development ..........................................................................................................................................................................13

2.4.1 Marketing with Stakeholders ......................................................................................................................................................13

2.4.2 Promotion of Tour Attractions ....................................................................................................................................................14

2.4.3 Sports and Adventure Attractions .............................................................................................................................................15

2.5 Tourist Attractions of the Knuckles Range ........................................................................................................................................15

Project Proposal for Development of Eco Tourism Venture for Prime Way Group 1
 2.5.1 The Corbertt’s Gap ........................................................................................................................................................................15

2.5.3 Mini World’s End ..........................................................................................................................................................................16

2.5.4 Lakegala ..........................................................................................................................................................................................17

2.5.5 Duwili Ella (Waterfall) .................................................................................................................................................................17

2.5.6 Pitawala Patana and Reversturn .......................................................................................................................................................17

3. Project Activities .............................................................................................................................................................................................19

3.1 Development of Infrastructure and Amenities .................................................................................................................................19

3.2 Soft Infrastructure .................................................................................................................................................................................20

3.3 Human Resources ..................................................................................................................................................................................20

3.3.1 Staffing ............................................................................................................................................................................................20

3.3.2 Recruitment ...................................................................................................................................................................................20

4. Financial Outlook .....................................................................................................................................................................................23

4.1 Infrastructure Cost and BOQs ........................................................................................................................................................23

4.2 Operational Expenses ...........................................................................................................................................................................25

4.2.1 Human Resource Costs ................................................................................................................................................................25

1 .......................................................................................................................................................................................................................25

4.2.2 Direct and Indirect Overheads ....................................................................................................................................................27

4.3 Project Financing Structure...................................................................................................................................................................29

4.4 FinancialForecasts ............................................................................................................................................................................30

Project Proposal for Development of Eco Tourism Venture for Prime Way Group 2
EXECUTIVE SUMMARY
The proposed project is a eco-tourism sector project, which address and support
several key issues of the modern economic crisis of the country, which aimed at
covering one of the key economic sectors viz. Tourism. The above sector will be
implemented in short-tem and mid-term activities with an investment of LKR 60
million.

The eco-tourism sector will be developed to attract foreign and local visitors, with
the concept of body, mind and spirit. A series of chalets will be constructed using
eco-friendly material and other amenities will also be established. It is estimated that
the net foreign income from the sector US $ 25,000 from the year of completion.

Project Proposal for Development of Eco Tourism Venture for Prime Way Group 3
Section One: Project Outline

1. Introduction
Tourism is presently one of the most crucial contributors to the economy in Sri
Lanka,, by expecting 1.7 billion USD by the end of year 2022. Amid various
environmental, economic and social issues, the aattitude
ttitude of tourists have gradually
changed from one that emphasized beach tourism to one that demands more,
natural, cultural and social interactions.
interactions. There is a new phenomenon, which is
broadly termed as “Alternative Tourism”. As a result, the concept of Ecotourism
emerged with the collaboration of cultural, rural, nature tourism, and its related
activities as a niche market
market.

Midterm strategic
strategic plan for Sri Lanka tourism states that Sri Lanka had 1% of eco
tourists. It is in a very low level comparing to other destinations
destinations.. Based on these
international studies and findings, researcher identified there is an issue of
practicing the concept of genuine eco tourism in Sri Lanka compared to the
international standards.

According to the current concept of eco eco-tourism,

tourism, Sri Lankan eco resort hoteliers
construct the meaning of ecoeco-tourism
tourism in various ways. They are more towards
nature based tourism, wil
wild
d life tourism and environment conservation tourism. They
were unable to target ecoeco-tourism
tourism market and attract eco tourist. Because the
hoteliers’ practice of the eco concept differs from international practices and
standards, they could not meet the expec
expectations
tations of eco tourists. Even though the eco
resort hoteliers’ main market is eco tourist market, they cater and address to other
type of tourists.

The project is of ecotourism focused and nature friendly. The three common
concepts within ecotourism are natural
natural-based,
based, educational, and sustainable in the
perspectives of both economic and social criteria.

1.1 Concept

The proposed project will be mainly focusing on nature based tourism

tourism,, along with
agro-tourism
tourism, ethno-botanical
ethno botanical and spiritual components built into the total model.
The theme of ‘be part of the nature’ will be promoted as the motto of the branding of
the concept.

Nature Agri

Ecotourism

Ethnobotany Spiritual

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The projects infrastructure will be developed in order to fulfill the concept of
ecotourism and the sub components including agri-tourism, use of herbs for culinary
and medicine and meditation and yoga for spiritual development.

1.2 Potential of Eco Tourism Sector in Sri Lanka

Sri Lanka is blessed with nature and possesses wealth of nature based tourism
attractions. But Sri Lanka has so far failed to utilize its natural resources to achieve
its goals in sustainable tourism by effective promoting eco-tourism. A
transformation of the tourism industry is required to make Sri Lanka competitive in
the global travel market place. This is the context and rationale for this Tourism
Strategic Plan (TSP), which recommend sanctions and implementation mechanisms
for the next four years, with a long-term view towards Tourism Vision 2025 and
achieving the United Nations (UN) sustainable development goals.

Tourism in Sri Lanka has been a story of untapped potential. The country is missing
opportunities to increase investment and jobs and to use tourism revenues to
conserve the environment and sustainably support communities in all parts of the
island.

Growth in the sector -visitor numbers, investment projects and international interest
- has taken place predominantly organically, without a definite vision and without
coordinated planning. Visionary and strategic guidance for brand positioning as
well as plans and policies for value addition have not been consistently executed.
Fundamentally, the ambitions of this TSP are to increase revenue for the country,
support local communities, and increase tourism on a sustainable platform.

By 2025, it is hoped that Sri Lanka will be identified as a place for memorable,
authentic and diverse tourism experiences.The situations and condition created by
Covid-19 is a major setback for the development of tourism industry. Now Sri Lanka
is compelled to achieve goals in sustainable tourism with carefully designed
investment plans when engaged in the industry. Developing and promoting eco-
tourism will be one of the best strategies to maintain a successful survival in
competing with other countries in the region.

Eco tourism has wider implications for bio diversity rich tropical countries such as
Sri Lanka. Many analysts have adopted a negative attitude those who stressed the
economic and development of potential of tourism. Great antagonism seems to be
directed towards tourism from sociologists regarding its hidden cost to the society in
social, economic and environmental terms. The general belief that the money
generated from the tourism industry is going out of the country because the services
are met with large quantities of important items and the rich industrialized tourist
generating countries have control of hotel chains, air lines to operations and travel
agencies. Thus the real beneficiaries of the traditional tourism industry are not third
world countries. According to the new trends in tourism fashion of enjoying the sun
and beach is fading away it is understood that the sun and beach is not sufficient to
satisfy tourists and to maintain sustainability of the tourism industry. The deviation

Project Proposal for Development of Eco Tourism Venture for Prime Way Group 5
of the travellers to experience of nature, culture has to be understood. Now a day a
considerable number of worlds’ travelling are nature related. This is a great
opportunity for Sri Lanka to open doors to remote communities to gain benefits of
booming tourism industry.

The natural resources base of country as a capital good is not been well utilized by
the existing system of tourism industry of Sri Lanka. That is bio diversity and
natural beauty are not been utilized in an optimal manner as capital goods for
tourism, recreation, education or as an aesthetic commodity and people believe that
by adopting this traditional form of tourism.

Sectors of eco-tourism are popular and increasingly attractive component of tourism

in many countries such as Costa Rica, Laos, Kenya. Sri Lanka has to develop and
promote this form of tourism. A primary advantage for Sri Lanka is that there is easy
access to a number of different eco systems within a short space of time. Sri Lanka is
a small country but it has a diverse array of easily accessible eco system which are
only two to four hours by motor vehicle. Thus tourists can visit several different eco
systems and see more wild life quickly and easily.

‘Sound Mind in a Sound Body’ is the modern philosophy of health and thus healthy
mind is equally important as the healthy body. Meditation and Yoga has proven that
it improves the mental wellbeing for several millennia and practiced today by all
sectors of the society, irrespective of religion and race.

Mindfulness is the result of meditation and Yoga exercises and which leads to
healthy life.

1.4Wellness Tourism – Sri Lanka as a Wellness Tourism Hub

Despite a two-decade-long debate in local travel and tourism sector about the need
to move beyond branding of Sri Lanka as a beach destination under the essence of
the Sun, the Sea and the Sand, the country is yet to align itself with the luxury
wellness tourism emerging in South East Asia.

Already a USD 72 billion market, wellness tourism is predicted to undergo

exponential growth owing to changing market focus. While tourism and hospitality
sector recorded a 5% annual growth worldwide, the luxury wellness segment
recorded an annual growth of 20%, driven by a growing group of rich clientele
willing to pay as much as USD 3000 a night and stay for up to two weeks at a resort.

According to the Global Wellness Institute, United States is the largest national
wellness tourism market by far, with an annual spend of USD 200 billion with
Germany at the second place with a spend of USD 60 billion while China too is
making huge gains with an increase of annual spending on wellness tourism from
USD 12 billion to 30.

Despite the fact that most of the wellness trips are domestic, international and

Project Proposal for Development of Eco Tourism Venture for Prime Way Group 6
inbound wellness travel also has been growing at a much faster rate. According to
the latest GWI statistics, the number of luxury wellness trips had increased by 22%
and the revenue by a 20% compared to 17% and 11% for domestic travel.

The growing concepts of wellness tourism around the world fits well with a new
generation of rich, busy and often stressed out customers searching for a holistic
approach to attain their wellness goals including weight loss, stress relives, detoxing
and reaching a physical and emotional equilibrium.

While wellness tourism was once single dimensional and was restricted to
pampering and spa vacations, wellness travel now includes many combinations of
healthy experiences, eating, cooking, exercise and meditation.

Consolidated within the wellness tourism are many segments and subcategories
including traditional and alternative medicine, spas, spirituality, nutrition and
fitness and Sri Lanka’s historical connection with Ayurveda fits well with the global
demand for the wellness of mind and body.

Sri Lanka other than India holds a strong competitive advantage in terms of
traditional knowledge and authenticity when it comes to Ayurveda. Its recognition
by the World Health Organization (WHO) as a holistic natural healthcare system
bolsters its authenticity as an alternative method of treatment and prevention to a
Western stream of medicine.

While Sri Lanka has been offering Ayurveda based treatment to tourists arriving
from the European block for the last few decades, the local stakeholders and service
providers are yet to connect luxury tourism with wellness and Ayurveda.

As the world of travel moves away from unhealthy, bacchanalian holidays towards
weeks of healthy and peaceful living, Sri Lanka too is gearing up to gain extra
mileage of its historical links to Ayurveda, Buddhist meditation, and tranquil
balanced living.

Among the recommendations made by the International Trade Center for the
development of Medical and Wellness Tourism in Sri Lanka is the positioning of Sri
Lanka as one of the authentic Ayurveda wellness destinations in the world, and
development, production, and export of Ayurveda linked cosmetic and
supplementary products to the global mass market.

The report also suggests the securing of international accreditations for Ayurveda
Spas including European Audit Institute Wellness and Spa, which evaluates the
ambiance, therapists, and doctors present at the wellness center or spa.

Project Proposal for Development of Eco Tourism Venture for Prime Way Group 7
Section Two: The Project Description
2.1 Project Location and site description

The proposed land plots for project are free held and with an extent of 100 acreswhich lies
within the AtanwalaGramaSeva Division of Laggala Divisional Secretariate in Matale
District in the Central Province. The main access road to the site is Rattota-Pallega road, via
Matale, and turn right at the 28/6 culvert through PradeshiyaSabha Road which leads to
Etanwala and Pitawala villages.
The area map is depicted in the Figure 1 and the survey map of the site is depicted in the
Figure 2.

Figure 1 Knuckles Conservation Area

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Figure 2 Site Plan depicting Lot 1 and 3

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2.2 Geo Physical Characteristics

2.2.1 Unique Landscapes

The Knuckles Region is considered as geologically unique and one of the most important
among others. The Knuckles Range is comprise of four groups of mountains falling within
different elevations, from 200-400ft, 1000-1200ft, 3000-4000ft and 5000-6200ft. above msl.
Because five different peaks, like the knuckles of a clenched fist can be discerned in it, the
range of mountains has been given the meaningful name of ‘Knuckles’. The mean elevation
of the range is about 4000ft. Aforesaid four main mountains regions are;
1. The main Dotalugala (5164ft), Koboneelagala (5098ft), Knuckles , (6112ft)
Gombaniya (6248ft) and Kirigalpotta (5403ft)
2. The mountains of Kalupahana range viz. Thunisgala (5341 ft), Wamarapugala
(5130ft), LabulaessaPatana (4901ft) and Lakegala (4324ft) which extends towards
north-east from the north of the range.
3. Group of mountain range starts from main region and extends north-east
comprising Dumbanagala (5383ft), Galthuda (3784 ft).
4. In addition peaks running between Velangala (3781ft) and Kehelhendorugala
(5016ft).
The range shows a variety of geo-physical landscapes from very sharp inclines to plains, hills
and valleys collecting rains from both monsoons results in heavy rains and aftermath of that
created ‘Inselburgs’ for millennia.

2.2.2 Rocks and Minerals

Condalite series of rocks belongs to the Highland Series that comprise of minerals such as
ortho-gneiss, para-gneiss, migta-gneiss, granite-gneiss. Among the mineral deposits found in
great quantities in the Knuckles region are mica, gems, feldspar, crystalline, dolomite, gneiss
and layered mica.

2.2.3 Soils

In the western slopes of the knuckles, the red-brown latersolic soil, the light brown loamy soil
and padisolic soils are found. Particularly in the Ambagamuwa and Rattota regions these soils
are present, in addition, in the upper reaches of the hills, the hard soils are found. Also well-
developed black soil, rich in humus is covered in the areas of thick jungle.
Towards the lower sections of the eastern and western slopes thick deposits of the soils are
found. In this area ill-matured soil can be seen mixed with pebbles and rocks, particularly on
the slopes of mountains with Pinus plantations.
The soil samplings from the project sites shown that on the valleys, sandy clay soils are
present while on the slopes with Pinus plantations has poor soil with exposed rocks and
quarts soils.

2.2.4 Weather and Climatic Conditions

With an area of 62 square miles, and with a unique landscape described above, no wonder the
Knuckles range has a range of climatic and weather regions. For example climatic transact
from Matale to Laggala via Rattota, will represent the change in the climatic and weather

Project Proposal for Development of Eco Tourism Venture for Prime Way Group 10
conditions in a short period of time and distance.
The region is fed by both south-western and north-eastern monsoons, and the mountain area
of the region is heavily bound by monsoonal and convectional thunder showers. Wetter areas
of the region receive an annual precipitation of 2300-4400mm. During the months of July to
September, most of the areas experience speedy winds, with a classic example of wind gaze
at the Corbert’s Gap locally known as Attalamettuwa.
The temperature of the area too varies markedly due to altitudinal and precipitation changes,
where cooler parts of the region with lowest temperature 10-250C, while lower and hotter
parts is with 26-320C on an annual average.

2.2.5 Drainage

The Knuckles range has four distinct water basins, namely Kaluganga, Heenganga,
Huluganga and Suduganga, by name runs across the rivers respectively. Hulu and Heen rivers
meet the Mahaweliriver at the close proximity of Victoria reservoir. Sudu river, in the latter
parts called Ambanriver meets the Mahaweli close to Angammedilla forming the Mahaweli’s
largest tributary.
Theligam Oya flows 1km north of the project site (of the Kaluganga Basin), which springs
from the mountains of Kirigalpotta (5403ft) flows northward via Sudugala, Etanwala, Meda-
ela, Polomana, Illukkumbura to Theligamuwa from there onwards, it turns north-west and
flows 12km to meet Amban river on its right bank close to Naula.
2.2.5.1 Tributaries of Theligam Oya
Theligam oya is fed by several tributaries and streams. Following are the main waterbodies
that feeds the Theligam Oya.
RatnindaEla It starts from the eastern slopes of Riversturn (Kirimetiya mountain
3820ft) flowing across of Pitawala and joins the Theligam Oya at
Ratninda village.
AmbangagaEla Starts from the eastern sector of Riversturn or Kirimetiyamountain and
flows through Pitawala to join the Theligam Oya at Mahalakotuwa.
Patti-ela Starting from the top of Kirimetiya Kanda and flows between Pitawala
and Mahalakotuwa to join the Theligam Oya.
Puwakpiti Oya Starting from the Kawdagammana mountain, and fed by various
tributaries named Gonamada Oya, Dunumandala Oya which are
forming from Karagahatenna and Gammaduwa areas. Puwakpiti Oya
forms the famous ‘Sera Ella’ water fall and joins the Theligamu Oya
close to Puwakpitiya Temple.

Galboda Oya Springs out from the Karagahatenna and Gammaduwa mountains and flows
through the Galboda village, which enters the Theligamu Oya at Naula.

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2.3 Market Analysis

2.3.1 Kandy and Mataleas a Tourist Destination

Sri Lanka is recognized as a popular tourist hot-spot and has witnessed the tourist
arrivals rising gradually in the post war era. As a result of this, the Sri Lankan
government is committed to establishing and positioning Sri Lanka as 'Asian
Tourism Icon' with its strong nature, culture and adventure in order to reach the
target of 2.5 million tourists on an average each year. Kandyand Matale districts
with named townsarelocated in the hill country of the Central Province of Sri Lanka
is compacted with picturesque landscapes and favoured cool climate and is often
referred, by the Sri Lankan tourist industry, where thousands of tourists flock
together particularly to witnessthe Kandy Esala Possession and experience the
salubrious climate, breath-taking views of valleys, meadows, mountains and
greenery. The towns play a major role to attract and promote the Sri Lankan tourism
industry. Therefore, the main objective of this project is to tap the potentials and
examine the factors that have contributed to create a positive perception about the
destination and the relationship between the tourists' perception and satisfaction
related to the holiday stay in Kandy and Matale.

Comparative to other tourist destinations of the island, Kandy and Matalehad been
developed since colonial era, as a holidaying and touring hot spot and far more
being developed in the areas of accommodation facilities, whereasMatale had been
recognized for its longstanding reputation for spices and spice gardens. The spice
gardens are one of the key tourist attractions in Matale District.

The key tourist attractions in the Knuckles region are identified and described in the
market analysis.

2.3.1 Target Market Segment

The target market is aimed at two components, viz. foreign tourists and local tourists
during the respective seasons. As the wintering destination, the tourists arrive in the
area mainly August through February (Winter Season) are the Europeans. This is
followed by the local tourist attraction from March through May (Summer Season)
are mainly consists of Sri Lankan nationals.

2.3.2 Target Market Size

The facility will be able to accommodate 20 pax daily at the maximum capacity (5
chalets with double accommodation, 2 chalets with triple accommodation and a
dormitory for 4 pax accommodation.

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The calculated total annual room days is calculated on prudent basis is 4080, which
is calculated at the expected average annual occupancy rate at 60% for 10 months
(during two major seasons) and 40% for 2 months during off-season.

2.3.3 Sales and Marketing

The entity will be registered at the Tourist Board and the Tourist Development
Authority.

The major marketing will be carried out through online and social media. The entity
will be enlisted at the world’s major online tour booking/advisory web platforms
such as agoda, trip advisor and mybookings.

The marketing team will be working closely with tour agencies and eco-tourism
chauffeurs to get better occupancy rates.

2.4 Business Development

Due to the tight relationship and close proximity of Matale and Kandy districts, it is
inevitable to develop the marketing plan dependent of each other. It is expected to
attract several hundred thousand tourists attracted to the Kandy Dalada Possession
and Sigiriya annually. The eco-lodging could be promoted as pre and post tours of
these two key attractions.

It is always possible to attract visitors who plan to visit spice gardens mainly
concentrated in Matale District.

2.4.1 Marketing with Stakeholders

Travel Agents Marketing/bookings though travel agents is a key

marketing strategy. One line booking agents such as
Agoda, Booking.com and Trip Advisor are key global
booking engines.

Hotels Hotels operating in the area would be a good potential

campaigners for the entity. Packages could be promoted
along with the forest trekking and sight-seeing within the
Knuckles range.

Investors Investor’s network and diaspora would be potential

customers.

A satisfied customer The best campaigner is a satisfied customer. The

recommendations from the satisfied customer would be
immeasurable and most accepted opinion on today’s
marketing context, particularly via online booking

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 engines and travel blogs.

2.4.2 Promotion of Tour Attractions

Knuckles Range of Mountains is located in the Central province of the country and
covers an area about 160 km2. The Knuckles forest range in Sri Lanka has a foremost
position in Sri Lanka’s natural resource base. The forest is recognized as a unique
ecosystem, owing to its geographical setting and related ecological aspects. In
particular, it is rich in habitat diversity, which covers a wide range of habitats within
a relatively small area. On the other hand Knuckles forest possesses a significant
potential for forest-based tourism activities. It possesses an enormous scenic beauty,
which could attract both local and international tourists. Moreover, the villages
surrounding the forest are traditional villages with specific cultural and social
characteristics. Thus from supply side, Knuckles is identified as an ideal site for
development of ecotourism. In addition to provision of important ecosystem
services, Knuckles forest contributes a lot to the national and local economy, both by
direct and indirect means.

The attractiveness of the area would depend on several attributes;

Accessibility The complexity of visitor movements within locations involves a

broad variety of paths and attractions that tourists can choose
from, and is influenced by the features of tourists and visitors
and by the spatial allocation of resources. In reality, tourist
destinations function as functional areas in terms of tourist
mobility to consume an attraction network. The rough terrain of
the Knuckles area consists of a network of roads, which are
motorable and foot paths.

Attractions Intensity in terms of amount of attractions also impacts patterns

of low intensity consumption associated with more set patterns
of consumption and greater intensity with greater variation.
Finally, the presence of prominent or distinctive attractions will
improve the patterns of space consumption, with tourists willing
to travel longer distances to visit them.

The Knuckles range consists of many attractions such as

waterfalls, geo-physical phenomena and cascading landscapes.

Amenities As far as amenities are concerned, personal toilet was identified

as the most important. However, clients also would expect other
amenities, such as fireplace, TV, cooked meals, and so on, to be
viewed as having an impact on satisfaction.

Communication infrastructure is a challenging factor for the

developers, as the terrain itself limits the access to the wireless
communication. A good idea would be to install several access

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 points via high bandwidth equipment.

Activities The meaning of the activities refers to the activities available at

the location and what customers will participate in during their
visit. Tourism activities are significant motivators for visitors to
visit a specific destination.

Wind surfing and gliding, mountaineering, white water rafting,

bird watching are some possible activities of interest within the
area.

Accommodation Within the patterns of movement of destination there are two

features: static and hubandspoke patterns. Static motion patterns
indicate staying at the lodging place most of the time, while hub
and speech movements are characterized by daily journeys to
nearby attractions coupled with exploration around the
accommodation place

The latter would be an ideal scenario coupled with

accommodation provided in eco lodges during night stays.

2.4.3 Sports and Adventure Attractions

Sri Lanka is a hotspot of adventure holiday with plenty of thrilled activities

including wildlife safaris, hot air balloon, white water rafting, trekking, hiking etc
and hot air ballooning is a demanding adventure sport in Sri Lanka.

2.4.3.1 Hiking and Trekking in Knuckles Range

The Knuckles Mountain Range consists of some of the most heavenly nature trails in
Sri Lanka. This region is home to around 40 villages and is rich in biodiversity with
the abundance of flora and fauna. Declared as a UNESCO World Heritage Site in the
year 2009, this mountain range has become a major eco-tourism spot in Sri Lanka.

2.4.3.2 Wind Gliding/Hot Air Ballooning

The Knuckles, Dambulla, Kandama and Sigiriya areas are the best locations for hot
air ballooning activity due to its climate in Knuckles which is exceptional for flying
balloons, due to its extremely calm and predictable nature.

Wind gliding is also possible sports in the area.

2.5 Tourist Attractions of the Knuckles Range

2.5.1 The Corbertt’s Gap

Corbett’s Gap opens out to stunning views of the Knuckles Mountain Range.

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Corbett’s Gap is a famous attraction in the Knuckles Mountain Range. It is a deep
valley and also happens to be a rain shadow area. The vegetation here can vary
between wet, dry and montane vegetation. The B grade road from Hunnasgiriya;
which is a popular starting point for trekkers, leads to the Corbett’s Gap. Corbett’s
Gap was given its name after a British surveyor Corbett who mapped the area.
Locals often refer to it as the ‘Attala-Mettuwa’. This is one of the most popular and
magnificent view points in the Knuckles Mountain Range.

During July and August, the landscape produces a funnel of blown air through the
gap and producing a continuous whistling.

A view from Corbertt’s Gap

2.5.2 Dunuwila

Situated close to Laggala, Dunuwila is a scenic location surrounded by a tranquil

lake which is the reason behind its name. ‘Dunu’ in Sinhala is the arrow that killed
King Ravana and ‘Wila’ translates to lake. It is located near the well-known
Wasgamuwa National Park which could be promoted as a tourists destinations.

2.5.3 Mini World’s End

The Mini World’s End is a spectacular observation point located within the Knuckles
Mountain Range in Deanston area. It is an escarpment with a sheer drop of 1192
meters. At this point you are met with magnificent and panoramic views of the
surrounding.

This is one of the three mini world’s end landscapes in Sri Lanka, one in Horton
Plains and lesser known Madulsima area.

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2.5.4 Lakegala

Lakegala is the Matterhorn Mountain in Sri Lanka, situated at the base of ‘Mimure’
traditional village, which rises upto 4,324 feet. Climbing the Lakegala is a thrilling
experience for any mountaineer.

Lakegala – Matterhorn Mountain in Sri Lanka

2.5.5 Duwili Ella (Waterfall)

This cascading waterfall is a scenic beauty of the TheligamOya and had been a travel
magnet for both local and foreign tourists.

2.5.6 PitawalaPatana and Reversturn

This is a unique landscape point in Sri Lanka., where you can have a panoramic
view of the Knuckles range. PitawalaPathana, the largest dry pathana(grassland)
plain in the island, with the breathtaking precipice that has a sheer drop of about

Project Proposal for Development of Eco Tourism Venture for Prime Way Group 17
1500 ft to the Puwakpitiya Valley below.

Camping at PitawalaPatana

Duwili Ella Waterfall

Project Proposal for Development of Eco Tourism Venture for Prime Way Group 18
3. Project Activities
Existing Pinus plantations are planned to be removed gradually, with a restoration
of natural forest species. Mature Pinus plants will be sold for timber, which will
reduce the imports of timber.

The bark of the Pinus will be removed and exported as mulching for horticultural
plants to the Middle East countries.

It is also possible to tap the Pinus trees for extraction of Pinus oleoresin for export,
which is used to produce natural polish and varnish.

3.1 Development of Infrastructure and Amenities

The following infrastructure will be developed at the facility.

Chalets (Double Occupancy) Five chalets of eco-type lodges, built with natural
material. Toilet facilities will be completed
according with ceramic wear to international
standards of the suitable class.

Chalets (Triple Occupancy) Five chalets of eco-type lodges, built with natural
material. Toilet facilities will be completed
according with ceramic wear to international
standards of the suitable class.

Dormitory Dormitory that could accommodate upto 4-5 pax

in groups will also built with common toilet
facilities.

Kitchen Kitchen with traditional touch that will be

equipped with traditional equipment. Cookery
wear too will be of traditional nature.

Restaurant A restaurant will be built with natural clay wall

and terra cotta floors to accommodate to dine in
for 20 visitors.

Car Park Access road and the car park will be built to park
visitors’ vehicles.

Chauffeurs’ Rooms Chauffeurs’ accommodation will be provided

next to the car park.

Stores Two compartment store unit will be built to store

fresh produce and the other unit to store general

Project Proposal for Development of Eco Tourism Venture for Prime Way Group 19
 goods.

Office/Reception Reception and back office unit will be built to

carry out guest registration and administrative
work.

3.2 Soft Infrastructure

The soft infrastructure will mainly consist of access road construction, and landscape
development. These will also include water fountains, summer huts, walk ways,
open hall for meditation and yoga, and a camping area.

3.3 Human Resources

3.3.1 Staffing

The following human resources are required to carry out the operations of the
business.

Chef (01 position) To oversee the operation of the restaurant and kitchen.
Guide the Cooks and stewards regarding the catering and
serving.

Cook (Oriental-01) To prepare oriental and local menus as required.

Cook (International-01) To prepare other international dishes, when required.

Stewards (02 positions) Catering in the restaurant.

Bell Boys (02 positions) For room service

Care Takers (03 positions) One for internal cleaning, one for maintenance of garden
and one for security.

Driver (01 position) Driver for office vehicle

Receptionist (2 positions) To work on shift basis.

Manager (01 position) To manage the hotel operations

Clerk (02 positions) To carry out the administrative work.

3.3.2 Recruitment
The top positions will be handpicked and preferably with 5+ years work
experienced in the field.

Other positions will be recruited through recruitment agency, giving preference to

Project Proposal for Development of Eco Tourism Venture for Prime Way Group 20
people from the local area.

Also an option is available for recruitment from hotel schools, higher educational
institutes and as interns and trainees.

Project Proposal for Development of Eco Tourism Venture for Prime Way Group 21
Design Concepts of Eco Lodges

Project Proposal for Development of Eco Tourism Venture for Prime Way Group 22
4. Financial Outlook

4.1 Infrastructure Cost and BOQs

The major investment flows into the building of hard and soft infrastructure. These
include the construction of chalets, restaurant, stores, office, parking slots, chauffer
rooms, Arena and walk ways. Soft infrastructure includes completing the landscape
and peripheral parapet wall.

The estimated costs are given below;

Investment Costs

ITEM DESCRIPTION UNITS TYPE UNIT COST TOTAL

LKR COST LKR
1 Infrastructure Costs
1.1 Construction of Chalets 5 units
(double) 1,800,000 9,000,000
1.2 Construction of Chalets 2 units
(trible) 2,200,000 4,400,000
1.3 Construction of Dormitory 1 units
2,600,000 2,600,000
1.4 Construction of 1 units
Office/Reception 3,500,000 3,500,000
1.5 Construction of Restaurant 1 units
2,500,000 2,500,000
1.6 Construction of 1 units
Kitchen/Stores 3,000,000 3,000,000
1.7 Construction of Chauffer 1 units
Rooms 2,500,000 2,500,000
1.8 Construction of Arena 1 units
2,000,000 2,000,000
1.9 Construction of Walk Ways 1 units
1,500,000 1,500,000
1.10 Construction of Parapet Wall 1 units
2,000,000 2,000,000
1.11 Construction of Parking Area 1 units
1,250,000 1,250,000
Sub Total Infrastructure
34,250,000

2 Landscaping and Built

Environment
2.1 Landscaping costs 1 sum
10,000,000 10,000,000
2.2 Instalation of Water 1 sum
suppli/Lighting 600,000 600,000
Sub Total Landscaping
10,600,000

Project Proposal for Development of Eco Tourism Venture for Prime Way Group 23
3 Power, Water, Heater
Installations
3.1 Power Supply & Electricity 1 sum
Installations 1,200,000 1,200,000
3.2 Water and Room Heater 10 units
Installations 150,000 1,500,000
3.3 Generator Back-up 1 units
650,000 650,000
Sub Total Installations
3,350,000
Total Infrastructure Cost
48,200,000

Project Proposal for Development of Eco Tourism Venture for Prime Way Group 24
4.2 Operational Expenses

4.2.1 Human Resource Costs

Staff Costs

ITE DESCRIPTION UNITS TYPE UNIT COST TOTAL

M LKR COST LKR
1 Staff Salaries and Wages PER MONTH PER YEAR YEAR 2 YEAR 3 YEAR 4 YEAR 5
1
1.1 Manager 1 man
months 100,000 1,200,000 1,200,000 1,320,000 1,452,000 1,597,200
1.2 Chef man
1 months 90,000 1,080,000 1,080,000 1,188,000 1,306,800 1,437,480

1.3 Cook 2 man

months 160,000 1,920,000 1,920,000 2,112,000 2,323,200 2,555,520
1.4 Stewards 2 man
months 100,000 1,200,000 1,200,000 1,320,000 1,452,000 1,597,200
1.5 Bell Boys 2 man
months 80,000 960,000 960,000 1,056,000 1,161,600 1,277,760
1.6 Care Taker 3 man
months 90,000 1,080,000 1,080,000 1,188,000 1,306,800 1,437,480
1.7 Driver 1 man
months 45,000 540,000 540,000 594,000 653,400 718,740
1.8 Receptionist 2 man
months 120,000 1,440,000 1,440,000 1,584,000 1,742,400 1,916,640
1.9 Clerk 2 man
months 100,000 1,200,000 1,200,000 1,320,000 1,452,000 1,597,200
Sub Total Infrastructure 16
885,000 10,620,000 10,620,00 11,682,00 12,850,20 14,135,22
0 0 0 0
2 Social Costs of Salaries
2.1 EPF Contribution (12%) 1 sum
106,200 1,274,400 1,274,400 1,401,840 1,542,024 1,696,226
2.2 ETF Contribution 1 sum
26,550 318,600 318,600 350,460 385,506 424,057
Sub Total Social Costs
132,750 1,593,000 1,593,000 1,752,300 1,927,530 2,120,283

3 Insurance and Welfare

3.1 Workmen Insurance 1 sum
500,000 500,000 500,000 500,000 500,000 500,000
3.2 Welfare activities 12 months
50,000 600,000 600,000 700,000 750,000 800,000
Sub Total Insurance and
Welfare 1,100,000 1,100,000 1,200,000 1,250,000 1,300,000
Total HR Costs
13,313,000 13,313,00 14,634,30 16,027,73 17,555,50
0 0 0 3

Project Proposal for Development of Eco Tourism Venture for Prime Way Group 26
4.2.2 Direct and Indirect Overheads

Operational Expenses

ITEM DESCRIPTION UNITS TYPE UNIT TOTAL COST LKR

COST LKR
1 Lease for the Land PER PER YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
MONTH
1.1 Lease for the Land 1 per year
100,000 100,000 100,000 100,000 100,000 100,000
1.2 Municipal Taxes 1 per year
25,000 25,000 25,000 25,000 25,000 25,000
Sub Total Rent and Rates
125,000 125,000 125,000 125,000 125,000 125,000

2 Utilities
2.1 Electricity 12 per
month 30,000 360,000 360,000 360,000 360,000 360,000
2.2 Water 12 per
month 20,000 240,000 240,000 240,000 240,000 240,000
2.3 Telephone and Internet 12 per
month 100,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000
2.4 Stationery 12 per
month 10,000 120,000 120,000 120,000 120,000 120,000
Sub Total Utilities
160,000 1,920,000 1,920,000 1,920,000 1,920,000 1,920,000

3 Maintenance Costs
3.1 Cleaning Services 12 per
month 100,000 1,200,000 1,200,000 1,320,000 1,452,000 1,597,200

Project Proposal for Development of Eco Tourism Venture for Prime Way Group 27
3.2 Civil Maintenance Work 1 sum
500,000 500,000 600,000 700,000 800,000
Sub Total Maintenance
1,700,000 1,700,000 1,920,000 2,152,000 2,397,200
Total Direct Operational Costs
3,745,000 3,745,000 3,965,000 4,197,000 4,442,200

Project Proposal for Development of Eco Tourism Venture for Prime Way Group 28
4.3 Project Financing Structure

Promoters : 30 million

Term Loans : 30 million

4.4 Financial Forecasts

Profit and Loss Account

1 Income Year 1 Year 2 Year 3 Year 4 Year 5

1.1 Income from Room Bookings 48,000,000 48,000,000 52,800,000 52,800,000 58,080,000

1.2 Income from Restaurant 4,000,000 4,000,000 4,400,000 4,400,000 5,000,000

Total Income 52,000,000 52,000,000 57,200,000 57,200,000 63,080,000

2 Direct Operational Expenses

2.1 Salaries and Wages 10,620,000 10,620,000 11,682,000 12,850,200 14,135,220

Social Security Costs (EPF & ETF 15% of
2.2 salaries) 1,593,000 1,593,000 1,752,300 1,927,530 2,120,283

2.3 Staff Insurance and Welfare 1,100,000 1,100,000 1,200,000 1,250,000 1,300,000

2.4 Cost of Lease Hold Land 125,000 125,000 125,000 125,000 125,000

2.5 Utilities 1,920,000 1,920,000 1,920,000 1,920,000 1,920,000

2.6 Maintenance Expenses 1,700,000 1,700,000 1,920,000 2,152,000 2,397,200

2.7 Cost of Food and Beverages 6,000,000 6,000,000 7,500,000 7,500,000 8,000,000

23,058,000 23,058,000 26,099,300 27,724,730 29,997,703

Contribution 28,942,000 28,942,000 31,100,700 29,475,270 33,082,297

Project Proposal for Development of Eco Tourism Venture for Prime Way Group 30
 3 Indirect Operational Expenses

3.1 Sales and Marketing Expenses 8,000,000 5,000,000 5,000,000 6,000,000 7,000,000

3.2 Sales and Booking Engine Commissions 5,200,000 5,200,000 572,000 5,720,000 6,308,000

3.3 Management Honorariums and Travel 2,400,000 2,400,000 2,400,000 3,000,000 3,000,000

3.4 Financial Costs 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000

3.5 Miscellaneous 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000

Total Indirect Operational Costs 21,600,000 17,600,000 11,972,000 17,720,000 18,308,000

Profit Before Tax and Depreciation 7,342,000 11,342,000 19,128,700 11,755,270 14,774,297

Project Proposal for Development of Eco Tourism Venture for Prime Way Group 31