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The Business Proposal Global Hotel Tourism Paper

Words: 3018, Paragraphs: 110, Pages: 11

Paper type: Proposal , Subject: Advertising

This concern undertaking recommends the building of a Swimming Pool for Global Hotel plc Lagos, Nigeria. This swimming pool when built will assist the company to non merely bring forth an one-year gross N3,480,000 but will assist the administration to retain its present clients and besides increase the Numberss of suites booked from 20 to about 30 suites per twenty-four hours. The addition in suites is expected to increase on a monthly footing over the following old ages

Apart from the benefits of extra income, addition in client ‘s backing and the rise in suites booked, the building of this swimming pool will besides assist to heighten the hotels evaluation from a 4- Star to a 5-Star hotel which could be used as a footing for increased criterions and monetary value to clients.

The mark clients of this concern venture are both the present and the possible clients of the hotel. They are normally the middle-class people in and around Lagos State.

The undertaking is estimated to be N2, 000,000 and will be constructed in two months. On the other manus, this undertaking could bring forth a net income of N1, 480,000 in one twelvemonth.

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Since the concern assessment method used by the company is the Payback Period ( PBP ) , it will take the company 1 twelvemonth to reimburse its initial investing capital.

Alternate concern chance

The concern proposal considers the building of assorted forms and sizes of the Swimming Pool and its associated cost and benefit. The forms are Square-shaped N2, 800,000, Egg-shaped ( N2, 000,000 ) , Circular-shaped ( N3, 000,000 ) and the Rectangular-shaped ( N1, 800,000 ) . After a proper consideration, The Egg-shaped pool is proposed because it is more stylish and will set the company in a competitory border over its challengers. This is because all its rivals have either the square or rectangular-shaped pool which is no longer stylish.


Harmonizing to the World Tourism Organisation ( WTO ) , “ Tourism is one of the top five export classs for every bit many as 83 per cent of states and is the chief beginning of foreign exchange net incomes for at least 38 per cent of states. “

Tax grosss from touristry are both direct and indirect. Direct revenue enhancement grosss are generated from the incomes earned by concerns and workers. Indirect revenue enhancements are responsibilities levied on goods and services purchased by tourers. The World Travel and Tourism Council estimates that revenue enhancement parts related to tourism global were over $ 800 billion in 2007.

Tourism is a monopolistically competitory industry. It has many comparatively little endeavors bring forthing somewhat differentiated merchandises and services. Barriers to entry and issue are comparatively low. Harmonizing to Prof. Ajaola ( 2008, P.6 ) , “ the hotel and touristry industry in Nigeria still remained comparatively untapped ” . This means that there is a immense market in this industry. The hotel industry provides enormous chance for comparatively little concerns to boom and is a taking generator of occupations. The hotel adjustment sector entirely provided around 18.3 million occupations world-wide in 2005, harmonizing to the United Nations Environmental Programme ( UNEP ) .

“ In an progressively competitory industry it is indispensable to bring forth new and advanced thoughts to distinguish a merchandise from others of the same nature ” ( Taylor, 2009 ) . Hotels can remain or leap in front of their rivals, without needfully incurring great disbursal, but by taking originative advantage of every chance and if Global hotels most win it must be at the head of invention. The building of this swimming pool is necessitated by the demand by the company to remain in front of invention and to make value service and experience to their legion clients from all plants of life.

1.3. Market ANAYSIS

“ Lagos is Nigeria ‘s most thickly settled province with stopping point to 18 million people ( National Population Commission, Nigeria ( 2009, P.12 ) . As a major transit hub with an international and local airdrome, Lagos is unambiguously placed to profit from tourer reachings into Nigeria. The presence of sea ports and major international route gateways of course place Lagos at an advantage for being the first point of call for approximately 68 % reachings into Nigeria ” ( the functionary web site of the Lagos State Government, Nigeria ) .

Although Lagos province is the smallest province in Nigeria, with an country of 356,861 hectares of which 75,755 hectares are wetlands, yet it has the highest population, which is over five per cent of the national estimation ( Tradeinvestnigeria, 2007: P.2 ) .


The province has a population of 17 million out of a national estimation of 150 million. The UN estimates that at its present growing rate, Lagos province will be 3rd largest mega metropolis in the universe by Y2015 after Tokyo in Japan and Bombay in India.


Of this population, Metropolitan Lagos, an country covering 37 % of the land country of Lagos State is place to over 85 % of the State population. ( Lagos State Population Commission )


The rate of population growing is about 600,000 per annum with a population denseness of about 4,193 individuals per sq. kilometer. In the built-up countries of Metropolitan Lagos, the mean denseness is over 20,000 individuals per square kilometer.

Current demographic tendency analysis revealed that the State population growing rate of 8 % has resulted in its capturing of 36.8 % of Nigeria ‘s urban population. World Bank, 1996 ) estimation at 49.8 million people of the state ‘s over 140 million population. The deduction is that whereas state population growing is 4/5 % and planetary 2 % , Lagos population is turning 10 times faster than New York and Los Angeles with sedate deduction for urban sustainability.A A

The gross estimation from the hotel industry by the Lagos State Government rose from about 78m Naira in 2007 to 150m Naira in 2010 ( Adetola, 2010 ) .

The population backed by the inflow of people from all over the universe to this great metropolis means that there is a immense market in this industry. Besides, with the cheery nature of the metropolis and the tourer Centre like National Art Theatre Iganmu, Lagos Central Mosque, Slave Port Badagry, Glover Memorial Hall, First Storey Building in Nigeria, Slave Jetty Badagry, Early Missionary Cemetary, Canon Gun, Instrument of Slave Abolition & A ; War, Slave Market Badagry, Christ Cathedral CMS, Tafawa Balewa Square ( Alade, Places to see in Lagos, 2010, p.13 ) , the building of this Pool will be a feasible and profitable thought.

1.4. Undertaking BENEFIT

This undertaking when approved and executed will convey the undermentioned benefits to the company.

1. This undertaking will assist to hike the company ‘s image among its clients and rivals and will decidedly take to increased gross revenues and net income.

2. This undertaking will assist the company to use the room ‘s capacity from 20rooms to 40rooms which is about a 100 per centum addition

3. It will bring forth income from both the swimming pool and besides from the backing that it will pull to the suites.

4. It will besides cut down the cost of operation of the hotel as the fixed cost will be spread across to the swimming pool. Fixed cost like the cost of running the works and others.

5. It will guarantee that staffs are to the full utilised because the swimming pool will cut down the sum of idle clip. This once more can be seen from the fact that the workers like the room cleaners, laundry staffs and hotel attenders frequently stay idle after go toing to a limited figure of clients. This venture will therefore guarantee that the hotels workers are to the full engaged.

2.1. Undertaking RESOURCES

Undertaking cost

The undertaking ‘s cost is as follows


Construction cost- 1, 300,000

Maintenance- 210, 000 ( 17,500/month )

Wages 432, 000 ( 3 workers/144,000 per one-year )

Gross saless advert 30,000 ( 3 Calendar months )

Other cost 28,000

Entire 2,000,000

Depreciation- 12 % per one-year

Undertaking gross

Gross point Revenue ( N )

Swiming Pool 1,620,000 ( 135000/month ) @ 15 customers/day


Liquors 288,000 ( 300 bottle/month @ ( N ) 80 )

Mineral 72,000 ( 150 bottles/month @ ( N ) 40 )

Suites 1,500,000 ( 600 customers/month @ 5000 )

Entire Revenue 3,480,000

Estimated net income = N1, 480,000

Fiscal analysis

Since the company uses the Payback Period in measuring its undertakings, below is an analysis of the viability of this undertaking. It is expected that gross will increase yearly by 50 % .

Year Revenue ( N ( 1000000s ) Cost N ( 1000000s ) PBP

1 3,480 2,000 1 year

2 5,220 2,400

3 7,830 2,880

Beginning of finance and other resources


Harmonizing to Brigham ( 2005 ) , Finance is the lifeblood and nervus Centre of a concern, merely as circulation of blood is indispensable in the human organic structure for keeping life ; finance is a really indispensable to smooth running of the concern. It has been justly termed as cosmopolitan lubricator that keeps the endeavor moral force. No concern, whether large, medium or little can be started without an equal sum of finance.

Although there are different beginnings of finance available to the company e.g. bank loan, net income, divestment, creditors etc, this undertaking will be financed with the companies retained net incomes and will assist cut down the load of holding to pay involvement if the company decides to finance the undertaking with bank loan of approximately 20 % one-year involvement or other beginnings that have strings attached to them.


A good figure of concerns fail non because of deficiency of fundss but because they fail to prosecute the right workers ( Walker, 1980 ) . The success or failure of any administration is mostly determined by the quality of its work force. The direct and indirect cost of bad enlisting is serious. A individual placed in an unsuitable work is an unsuitable work is either unable to make the needed criterion of public presentation or is working under psychological strain. The building of the pool will intend that three ( 3 ) extra staffs will be engaged by Global Hotels and because there are limited Numberss of staffs in the company to enroll from internally, the workers will be recruited externally. The vacancies will be posted on the company ‘s web site and other occupation sites which are normally free and will give the same consequence as paid advert.

After the advert has be made and the right applier has been chosen, the other facet will be to prosecute the workers but they can non be engaged if they are non adequately trained. Training demands will be identified and the hotel director will guarantee that the right preparation plan is designed for the new workers to be trained. Although there are different developing techniques like talks, coaching, instance survey method simulation etc, the company will utilize the initiation as a agency of developing the chosen workers because they do non necessitate a specialized preparation that will affect much of the company ‘s resources.

Construction Company

The company that will be selected will be able to run into the company ‘s specification and deadline because incorrect design and the extension of the deadline will non intend good to the company.

2.2. Selling Scheme

A selling scheme is a program that is developed with the end to market a specific thought or merchandise to certain people Kotler, ( 1980 ) . You have to make a great selling scheme in order to be successful with your thought or merchandises.

Harmonizing to Porter, ( 1998 ) , there are three generic schemes available to a company-focus, cost leading and a discriminator and because the hotel industry is a monopolist competitory industry and there is a low entry and issue barriers, the propose scheme to Global Hotels will be the merchandise distinction scheme. The ground is that to win a big sum of clients in such an industry, a company will necessitate to merchandise different but similar merchandises and services to derive a immense market.

The ground for taking the elliptic swimming pool is to pull client who normally are really witting of new and modern merchandises. Since the best form of the merchandise has been identified and the discriminator in usage, the following measure will be to make consciousness to the clients of the company ‘s advanced merchandise. Although there are different options available for the company to make its possible clients, the best pick will be to utilize the telecasting medium. The ground for this pick is because of the fact that the mark clients are concern and extremely placed persons in the society who loves listening to the intelligence. The paid advertizement will be done at 7am and autopsy for three months.

2.3. Undertaking ASSUMPTIONS

It is assumed that the addition in the Lagos State Government ‘s gross projection means that there will be increased activity in the touristry industry for the coming twelvemonth thereby taking to an addition in clients to the company.

It is besides assumed that of the mean client of 20 per twenty-four hours, at least 10 will act upon their friends or co-worker to sponsor Global Hotels Ltd every month.

2.4. Undertaking DESCRIPTION

This undertaking which is the building of a Swimming Pool will be carried out by either of these companies whose proposals will be considered and one eventually chosen.

The Hotel director shall oversee on a day-to-day footing the advancement of the undertaking.

The Pool will be manned by one Staff who must be really good at swimming and will be made to remain by the side of the pool to supervise clients and deliverance any client who wants to submerge.

Two Pool Attendant staffs will be employed to function clients need at the pool.

These Three staffs shall besides be responsible for the general care of the pool.

3.1. Undertaking IMPLIMENTATION Plan

Below is a table demoing the undertaking execution program for the building of the swimming pool by Global Hotels. The event day of the months, the event itself every bit good as the event account will be used to explicate the different events.


Events day of the month


Event Explanation



Construction Proposals

The undertaking proposals will be sent to a figure of building companies. The ground for this is to choose from the list of interested companies the company that will be able to transport out the building of the swimming pool in the most cost effectual manner and meets with Global Hotels undertaking specification. Besides, the proposals will be considered based on the company that will finish the undertaking in the specified clip frame which is in two moths



Company chosen

At this phase, among the list of companies that has shown involvement will be evaluated based on their path record. Then chosen company will be notified and asked to get down work.



Initial Project start-up capital provided

Immediately after the right company has been chosen, initial mobilization fund of 30 % will be paid to the building company. This is to enable the company start work directly off.



Beginning of building

After the mobilisation finance has been provided to the company, the following event will be to let the company two hebdomads to mobilise and convey in the necessary equipment and stuffs needed to make the occupation. This would hold been done before this day of the month and the occupation is expected to get down on this day of the month.



Undertaking monitoring and control

To guarantee that the undertaking meets with the specification and is under agenda, the hotel director will be instructed to transport out a day-to-day supervision/ appraisal of the undertaking ‘s advancement and study to the undertaking applied scientist to do necessary amendments in instance of divergences.



Placement of enlisting advert

Since the undertaking is expected to complete by 6, June there is demand to get down pulling the right quality of staffs that will be needed to adult male both the swimming pool and to function as service staffs ( servers ) .



Appraisal and Concluding payments made-project completion

The following phase will be the concluding appraisal of the undertaking after its completion and payments to the building company. This payment will merely be made after the undertaking has been weigh up and fund to hold met the agreed specification and design.



Invitation and choice of workers

At this phase the right pool of appliers will be invited for interview and the right campaigner selected for the occupation. And since this is a new country of concern to the company, experience custodies will merely be engaged particularly the pool attendant staff who must be a good swimmer and savior. The right campaigner will be notified instantly and asked to get down work the undermentioned hebdomad.



Beginning of operation

Immediately after the undertaking is completed and the right staffs selected, the following logical thing to make will be to get down operation by the official gap of the swimming pool to the public-customers.



Advert arrangement

To guarantee that possible clients are cognizant of the company ‘s new merchandise and to pull would-customers advert will instantly fellow and will be done utilizing the television-news hours as the right medium to make the mark market.



Undertaking rating

The first month after the completion of the undertaking is a good clip to get down measuring the success of the venture.

The undertaking will be evaluated to cognize if it has lead to an addition in room demand, client ‘s sentiment on the new merchandise, and the entire profitableness of the undertaking utilizing the expected income as a footing for measuring the undertaking ‘s success.

3.2. Undertaking Monitoring AND EVALUATION OF SUCCESS

Although there are assorted techniques for monitoring and commanding a undertakings success, the earned value Analysis will be used to supervise the advancement of this venture from the beginning of the undertaking to the terminal. Besides the gross from the venture will be monitored to measure the undertaking ‘s profitableness whether or non it meets with the company ‘s forecasted net income.

The Hotel Manager will besides supervise the cost of care of the pool every bit good the public presentation of the freshly employed workers to guarantee that the profitableness and standard aims are non compromised. Since an addition in cost of care and a lessening from gross will be unacceptable, the director will supervise the cost and guarantee that it does non travel beyond the estimated value.

4.1. Decision

About the author

This paper is written by Sebastian He is a student at the University of Pennsylvania, Philadelphia, PA; his major is Business. All the content of this paper is his perspective on The Business Proposal Global Hotel Tourism and should be used only as a possible source of ideas.

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The Business Proposal Global Hotel Tourism. (2017, Jul 22). Retrieved from https://paperap.com/paper-on-the-business-proposal-global-hotel-tourism-essay/

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