INTRODUCTION TO TOURISM &

HOSPITALITY MANAGEMENT
15,6,2021
Ayesha Zaman Khan
 Introduction
 The process of resort planning and development
is basically an economic one, and all other
economic objective. Management has a critical
role early stages. However, until recently
management’s role was not fully appreciated;
managements become involved in the process
after irreversible decisions had already been
made. These decisions often had a definite
economic impact on the resort project scertic
orientation of the hotel to major recreational
facilities
 Hotel Development
 Hotel development can refer to either hotel
business development or hotel property
development, but often both as interconnected
requirements. The full spectrum of hotel
development starts with strategic business
management and ends with the final
disposition and transfer of a newly built hotel
to the operator.
5 Phases of Resort Development Process

1) Conceptualization, Planning & Initiation

2) Feasibility Analysis
3) Commitment
4) Design , layout & construction
5) Management & Operation
Concptualization , planning & initiation
 The resort project is first conceptualized in a
general way, with ideas contributed by either
developers , property owners, investors, hotel
management companies, public or quasi public
agencies, or special interest group one, two or,
three of these parties may propose the need for
a new resort project, frequently specifying the
site, type, size, preferred operator, and physical
characteristics of the proposed resort.
 Cont..
 Design, image & marketing
 Lodging structures
 Recreational facilities
 Design of the general transportation system
 Freestanding restaurants, snack bars, retail, &
rental shops
 Provision for future expansion
 Employee housing & related needs
 Support facilities & systems
 Cont..
 Resort hotel
 Deliveries, waste removal, security, and
maintenance
 Food and beverage production
 2. Feasibility Analysis
 The purpose of the feasibility analysis is to
determine whether the preliminary master plan
can be justified in economic terms, and whether
it will comply with social, environmental,
political, and legal constraints. Besides
conventional debts, financing sources and
preferred by equity sources, both of which will
be needed to carry the resort through the later
development stages to completion. It also serve
as a blueprint for a more detailed marketing
plan later on.
Main elements in a Feasibility Analysis
 A general overview of the area where the
project will be developed, including the area’s
the economic climate, its political stability,
travel trends in the area, community support
and weather patterns.
 A market analysis that looks at potential types
and numbers of visitors/guests and where they
will come from, market needs, seasonal
patterns, ad other data.
 Cont..
 The physical characteristics of the site with
particular reference to its advantages and
disadvantages , possible alternative sites for the
resort proposal , and the physical
characteristics of the lodging facility projects.
 Financial information such as estimates of
capital requirements, debt-equity leverage,
cash flow statements, balance sheets, and
income statements projections-also known as
the pro forma statement.
 Cont..
 Additional information such as import duties
and restrictions on importation of materials
needed for construction or operation.
 Consensus and dissenting opinions of experts
who have been consulted on the project’s
feasibility
 3. The commitment Phase
 The commitment phase involves the final
negotiations for many aspects of the
development commitments may be in the form
of formal agreements. letter of intent.
 Elements of commitment phase
 Land assembly/site acquisition
 Agreements from public entities for
development and funding assistance
 Selection of and agreements with a hotel
operator for franchise rights, affiliation, and/or
management assistance, if applicable
 Obtaining development rights for the site
 Development of the general land-use plan
 Selection of a project architect and engineer
 Cont..
 Selection of project developer
 Refined project development costs, schedules
and drawings
 Agreement among financing, developing and
operating entities
 Obtaining necessary environmental documents
and other governmental approvals and permits
 Determination of ownership structure and
securing finance
 Elements in the final phase of resort
development
 Preparation and implementation of an
aggressive sales and marketing campaign
 Recruitment, training and retention of staff
 Provision of services per negotiated
agreements
 Organization and management of each
operating department
 Control and reduction of operating costs and
expenses
 Cont..
 Generation of profits, maintenance of facilities,
and enhancement of the resort’s image
The End