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MARIANO MARCOS STATE UNIVERSITY COLLEGE OF BUSINESS, ECONOMICS AND ACCOUNTANCY BATAC CITY, ILOCOS NORTE

In partial fulfillment of the requirements in Accounting 116

Submitted to: DR. OSCAR AGPAOA

Submitted by: VINCENT JOHN A. ALIPIO KAI-MARIE A. BARROGA JOHN ALEXIS D. ILACAD BRADLEY R. POLICARPIO MARK JOSEPH RESPICIO BS in Accountancy IV

OCTOBER 2013

CONTENTS
1. EXECUTIVE SUMMARY 1.1 THE PROJECT 1.2 GENERAL AND SPECIFIC OBJECTIVES 1.3 LOCATION 1.4 HIGHLIGHTS 1.4.1 MARKETING PLAN 1.4.2 TECHNICAL PLAN 1.4.3 PRODUCTION AND OPERATION PLAN 1.4.4 MANAGEMENT AND ORGANIZATIONAL STRUCTURE 1.4.5 FINANCIAL ASPECT 1.4.6 SOCIO ECONOMIC ASPECT 2. PROJECT BACKGROUND AND HISTORY 2.1 DESCRIPTIVE DATA 2.1.1 SITE LOCATION 2.1.2 HOTEL FACILITIES AND ADVENTURES 2.1.2.1 ROOMS AND SUITES 2.1.2.2 RESTAURANT 2.1.2.3 FUNCTION HALL 2.1.2.4 BAR LOUNGE 2.1.2.5 TRAVEL DESK 2.1.2.6 COTTAGES 2.1.2.7 NATURAL WATER FALL, SWIMMING POOL, SPA AND SAUNA 2.1.2.8 CAMPING SITE 2.1.2.9 GARDEN 2.1.2.10 3. ECONOMIC ASPECT 3.1 DEMAND CYCLE 3.2 MARKET SEGMENTATION ZIPLINE, TREKKING AND WALL CLIMBING

3.2.1 VACATIONERS/TOURISTS 3.2.2 TERTIARY STUDENTS 3.2.3 FAMILIES, CHILDREN AND BUSINESS MAN 3.3 SUPPLY 3.3.1 CAPACITY TO PRODUCE 3.3.2 FACTORS AFFECTING PRODUCT SUPPLY 3.3.3 SUPPLIERS 4. TECHNICAL ASPECT 4.1 THE PLAN 4.2 LOCATION 4.3 PRODUCTION PROCESS 4.4 EQUIPMENT AND MACHINERY REQUIREMENT 4.4.1 PRE-OPERATING INVESTMENT 4.4.2 EXPANSION PROGRAMS 4.4.3 OVERALL INVESTMENT 4.5 LAND AND BUILDING REQUIREMENT 4.5.1 LAND REQUIRED 4.5.2 COVERED AREA REQUIREMENT 4.5.3 ARCHITECTURAL REQUIREMENT 4.5.4 LAYOUT REQUIREMENT 4.6 HUMAN RESOURCE REQUIREMENT 4.6.1 PRE-OPERATING REQUIREMENT 4.6.2 EXPANSION PROGRAMS 4.7 OTHER COST REQUIREMENT 4.8 SANITATION AND WASTE DISPOSAL REQUIREMENT 5. MANAGEMENT ASPECT 5.1 MEMBERS OF THE AUDIT AND RISK COMMITTEE 5.2 MEMBERS OF THE RENUMERATION COMMITTEE 5.3 EXECUTIVE COMMITTEE

5.4 MANAGING DIRECTORS 5.5 HUMAN RESOURCE MANAGERS 5.6 FRONT OFFICE DEPARTMENT 5.7 FINANCE DEPARTMENT 5.8 HOUSEKEEPING DEPARTMENT 5.9 FOOD AND BEVERAGES DEPARTMENT 5.10 5.11 5.12 5.13 5.14 5.15 KITCHEN DEPARTMENT ENGINEERING DEPARTMENT PRODUCTION DEPARTMENT GARDENER SECURITY DEPARTMENT RANGER DEPARTMENT

6. ORGANIZATIONAL STRUCTURE 7. FINANCIAL ASPECT 7.1 PROJECTED INCOME STATEMENT 7.1.1 SCHEDULES TO PROJECTED INCOME STATEMENT 7.2 PROJECTED STATEMENT OF FINANCIAL POSITION 7.3 PROJECTED CASH FLOW 7.4 GENERAL ASSUMPTIONS 7.4.1 REVENUE ASSUMPTIONS 7.4.2 COST ASSUMPTION 7.5 REVENUE COMPUTATION 7.6 FINANCIAL RATIONS 7.6.1 PROFITABILITY RATIONS 7.6.2 SOLVENCY AND LIQUIDITY RATIOS 7.6.3 PROJECT EVALUATION 8. FINANCIAL ANALYSIS 9. SOCIAL DESIRABILITY 9.1 SOURCE OF EMPLOYMENT

9.2 EMPLOYEE COMPETITIVENESS AND PROFESSIONALISM 9.3 SOURCE OF LIVING 9.4 TOURISM 9.5 ECONOMY 10. APPENDICES APPENDIX A APPENDIX B APPENDIX C APPENDIX D APPENDIX E APPENDIX F

1. EXECUTIVE SUMMARY
1.1 THE PROJECT This study entitled, Les Chateaux Mountain Resort and Adventures had been an answer to queries about the possible future success of Dingras Feasibility for Resort and Adventure destination in the province of Ilocos Norte. Its goal is to establish unique Resort and Adventure Park in the area, raising the bar of standard class of resort found in the province. In other words, making out of the archetypical type of Resort and Adventure Park within the province of Ilocos, where excellent service provisions and exemplary facilities could be enjoyed at its finest. 1.2 GENERAL AND SPECIFIC OBJECTIVES In general, it aims the viability and feasibility of establishing a hotel and resort, as well as adventure parks for the people, especially for those local and foreign tourists who come and visit the province. In specific, it aims to contribute to the growth and development of a province in helping the economy through providing business, be the source of a place that offer tourism services and related products, and also provide employment for people in the Dingras or it the province of Ilocos Norte, at its larger scale. The study will provide business that will benefit government specifically the municipality of Dingras, the people as the customers and the entrepreneurs themselves and of course to its stakeholders. The study also show the management structure, its marketability, the production facilities and products and services to offer, the financial estimates and analyses. It also includes the social desirability, recommendations and conclusion of the business. The proposed business will be named Les Chateaux Mountain Resort and Adventure. Its nature is to offer hotel, restaurant and bar, functionrooms, Water Park, spa services, and various soft and hard adventure activities to its target customers.

1.3 LOCATION The proposed business will be located at Barangay Capasan Dingras for the Hotel and pool areas, Barangay Bacsil and Espiritu for the Adventure sites and other amenities where stunning and grandeur ecological environment is observed. 1.4 HIGHLIGHTS 1.4.1 Marketing Plan The Les Chateaux Mountain Resort and Adventures intends to cater a wide range of people especially those who considers resort hopping and adventure activities as parts of their lifestyle. Competition is inevitable in every business venture and in every economic industry that results to a number of direct and indirect competitors of the services and products offered by the establishment. The Les Chateaux Mountain resort and Adventures intends to charge its services and products on the basis that the potential markets can avail while considering also the status or quality of the services offered to them. It means we based from the most available costs considering factors necessary to come up with the right and fair fees for the public. Cost equates quality and satisfaction, in essence. More so, it offers services and products with vast array of options giving the customers more choices and variations for selection. The business will greatly make use of the social networking sites such as instagram, facebook and the like for promotion of the business to potential markets. Also, the business can promote through the usage of radio broadcasting and flyers, posters, etc. 1.4.2 Technical Plan The building plan and layout were set out in accordance with the following factors: accessibility, ease of usage, conduciveness and desirability from the customers perspectives. The plan for the structure and design has been in connection with Meditterrean accent which is out of the organic and usual type of resorts in the area. The choosing of the design was for the purpose of introducing other flavor of resort type in the region since most of the existing resorts are accentuated with organic sceneries, thus making it an opportunity to grab a better chance for market persuasion to visit the place.

1.4.3 Production and Operation Plan The building layout had been drafted to visualize the design of the establishment and arrangement of each sector or areas of the place, both interior and exterior of the resort and adventures. The business will construct the building to be used for its operations. Since business waste will be at its large, mostly comprised of non-biodegradable wastes and biodegradable kitchen throw-outs, a compose pit shall be excavated meters away from the Resort place and for small amounts of thrashes, a throw bin to be collected by the garbage collector may be sufficient. A production process was designed in order to better understand what processes need to be executed in specific service transactions. 1.4.4 Management and Organizational Structure The proposed business will be in the form of partnership and will have a starting capital of approximately 24,000,000. This capital will be used to build hotel and other site developments, water park, restaurant and bar, spa, and function rooms. The said capital will be utilized in the acquisition of the tools, equipment, materials, and furniture needed. Furthermore, it will be used for the actual operation of the business and for the promotion during the opening of the business. After a thorough study, the researchers projected possible problems that will arise upon the establishment of the business. After careful evaluation, corresponding solutions was made and presented in the details of this study which results to a conclusion that the establishment of a Resort and Adventures in Dingras is deemed to be feasible and viable in all respects. 1.4.5 Financial Aspect The total investment requirement is estimated at Php 23,637,063. The financing and funding of the business will come from the joint contributions of the partners and long-term debt financing. Financing assumptions would be 15% will come from Long-Term Debt with a rate of 12% and 85% will be funded by the partners. Operating Income in its first year is projected to be 1,167,808 which will gradually increase for the next year of operations. Incomes are projected for a 5 year operations. Income realized for the 1 st year will be prioritized for the

payment of the interest of the long-term debt at 12%, and beginning the 2nd year of operations interest and installment payment will be made on the long-term debt which is intended to be paid out for 5 years as per borrowing agreement. It is expected that during the first quarter of the 6th year of operations, the business would fully recover the initial investment. 1.4.6 Socio Economic Aspect The social benefits of the business include job description to the local residents in the province as well as increasing employment rate in the province promoting self-sufficiency among the locals. Also, gender and age development is stimulated through the various trainings of its employees. Furthermore, infrastructures which are included in the site development of the project will provide benefits to the society by developing and maintaining roads which will provide easier access of transportation to the barangays in the area. Socio economic benefits can also be derived from the taxes. The Les Chateaux Mountain Resort and Adventures pays the government. These taxes will provide for the improvement of services offered by the government which includes the promotion of the general welfare of the Filipino people.

2. PROJECT BACKGROUND AND HISTORY People around the globe would work to the bone in order to earn much money to achieve prestige, power or to reach fulfillment. Nowadays, due to complexity in the business world, many suffered from stress related diseases such as obesity, heart disease, diabetes and depression. Busy people have forgotten to find time for relaxation and recreation. Indeed, human being really need some time for leisure, refreshments and recuperation. Such things will make them more productive and responsive to the call of their duties and responsibilities, not only as to their professional career but also for personal and family affairs. Resort of any kind is an excellent venue for leisure or vacation . Resort is any place or places with pleasant environment and atmosphere conducive to comfort, healthful relaxation and rest, offering food, sleeping accommodation and recreational facilities to the public for a fee. (Definition per DOT Rules on Accreditation). The Philippines, with its astonishing and mesmerizing tourist destinations due to its varied attractions, has a lot to offer to local and foreign tourists. It has a wide array of entertainment to cast a spell on its visitors with its beautiful scenic islands, exotic beaches, amazing volcanoes, world-class diving spots and unique wildlife and many other attractions. With resorts, they serve as accommodation to local and foreign tourists who visit our country. In recent years, the distinction between resorts and other hospitality accommodation has become blurred with much overlap. Instead, what has emerged is the resort concept that focuses on the creation of an environment that promotes and enhances a feeling of well-being and enjoyment which is operationalized through the provision of quality accommodations, food and beverages, entertainment, recreational facilities, health amenities, pleasant and restful (or exciting) surroundings, and an extremely high standard of service delivered in a friendly and personalized manner. The resort experience can encompass a range of experiences and property types. (Resort Planners for the Ministry of Environment, Lands and Parks. June 2006.) The types of resorts according to its location would include Inland Beach Resort, Island Resort, Lakeside Resort, Farm Resort, Mountain Resort and Springs. The most common type is

the Beach Resort. Most tourists prefer beach resorts because they want to experience the exotic beaches in our country as well as to witness the beautiful sun rise and sun set views. Ilocos Norte is one of the top tourist destinations in the country due to the presence of many historical and natural sceneries and white sand beaches. The province of Ilocos Norte, with 183,220 tourist arrivals in 2008, catered to majority (51.9%) of the tourists in the region in 2008. Although the influx of foreign tourists steadily declined for the past three years, Ilocos Norte continued to be the favorite hub of foreign tourists in Region 1. This could be due to the presence of the International Airport and tourist attractions in the province like the white beaches of Pagudpud. A total of 20,457 foreign tourists visited the province in 2008, which comprised majority of all foreign tourists in the region. Based on the same data set, the province had the most number (19 out of 50) of accredited tourist establishments in the region, consisting of resorts, tourist inns, hotels and pension/motels. The province also registered the highest average length of stay of tourists from 2006-2008 at 1.7 days, higher than the regional average length of stay of 1.2 days during the same period. (Department of Tourism Regional Office 1) With this continuous growth of tourists in the province, the investment opportunities of putting up resorts and similar accommodation facilities will likely increase. However, this poses big threats to existing players in the industry since competition will become tighter. Hence, the proponents had decided to establish a unique resort that has distinct features as compared to others. The proponents came up to the idea of putting up a business which offer services and provides delightful opportunity to tourists and individuals who want to experience a quiet and peaceful living along side with mountain, appreciating the great beauty of nature. Combined with a perfect marketing strategy, LE CHATEAUX MOUNTAIN RESORT AND ADVENTURES will then be a feasible business.

2.1 DESCRIPTIVE DATA From the land where famous and known beaches totally captured the interest of most of the people countrywide, the province of Ilocos Norte, there are also falls that hide its glory and majesty, hibernating and waiting for its time to be discovered and be popularized. One of the falls that it is unequivocally captivating due to its stunning height and its surrealistcrystallized water is the Capasan Falls and the each drop of water fell with its own clarity, making a vast splash upon the level surface below. The waterfall was a clear sky leading up to a downpour. The drop downward was drenching, dripping, and dousing to those daring enough to look at it. The onslaught of water was like a cascade of never-ending rain. Though, it can seem a bit overwhelming, the view is one of the most breathtaking ever seen. Every rock protruding out made the water grasp for something in the distance as it fell out of the sky. The splashes emerging out of the water was steam coming off the ground. It could be reached by walking from the access road, one of the most interesting destinations that wait for trekking activity. The falls has a vaulting vertical stature approximately 70 feet high. The water that flows downstream comes from the mountain, thus it has very cold and smooth water that gently caresses the visitors whenever they take some dive after a long trek to the place. Its unique feature that truly amazes many spectators is the cascading feature of the falls, layering three falls that flows layer by layer, creating picturesque effect, adding to the beautiful show of water flowing down to the basin-like stone formation that catches the water from the falls. Adding to those features, the water from the falls was swishing over the rocks joyfully. It was thundering down into like a gigantic water spout. When it toppled into the ecstasy-pool, it foamed it at the bottom. The rest of the pool was as clear as cellophane, enabling us to see down into the rocky bottom. Fronds of forest-green plants waved gently in the depths. The waterfall looked like a sheet of bluish-green velour as it swished down. Its edges were hemmed with whipped-white lines. People could see many sparrows settling on the branches of those trees growing on the place and the scene was picture perfect. A group of eluding ferns, edged with saws teeth and statue still, added a tropical flavor.

To make these clandestine falls known as a tourist destination, a mountain resort and adventures is to be establish to pool in a demand of tourist, local and foreign, and to further enhance its picturesque beauty. The Les Chateaux Mountain Resort and Adventures is designed for leisure travel and relaxation. At the Resort, every action will made to make guests feel comfortable and relaxed. To do so, the hotel will provide the best in services and amenities. While lod ging at the resorts wonderful property, guests can enjoy mini bar, restaurant, family room, pool and natural water fall. The resort and hotel will feature beautifully appointed rooms, each including air conditioning unit, private bathroom with tub and quality sleeping paraphernalia. At the lobby of the resort, visitors can see a shop which sells local stuffs and pasalubongs Throughout the stay of customers in the resort, they can enjoy the relaxing atmosphere of the green mountain. The Les Chateaux Mountain Resort and Adventures, as currently proposed, will become annual season resort directly serving local and foreign tourist. It will also be a responsible large-scale development project in Dingras has ever seen. All of the resorts facilities will be open the public, increasing the number of recreational options available to local residents.

2.1.1 Site Location The subject site is located in Dingras, Ilocos Norte The subject land has two particularly compelling aspects: 1) its mountain setting with three cascading waterfalls; and 2) its convenience to the metropolitan area. The sites mountain setting provides unique aesthetic advantages due to its scenic beauty and peaceful surroundings.

The following maps and master plan identify the location of the land and the surrounding system of highways, and the local roadways in the lands immediate vicinity.

The subject sites proximity to Laoag City is compelling chiefly due to the economic implications. The presence of strong connections to a city generally recognized as having one of the highest concentrations of wealth in Ilocos Norte is particularly advantageous for the type of resort proposed on the subject land. Under optimal traffic conditions, the subject site is located within 30 minutes drive of the majority of Laoag areas various points of origin. The location connections to the well-developed network of highways and international airport serving the region are just as compelling because of the vast population of tourist, students; businessmen hold meetings, retreats and vacation at resorts. Assumption: Our analysis assumes that the proposed development of the land can proceed legally and in conformance with local zoning standards. The project would seemed be permitted to proceed as it is currently imagined. Furthermore, we assume that the land has the physical utility sufficient to allow for the proposed project, including connections to all necessary utilities. We also assume that the land is not limited by flood zone, seismic risks, or any other extraordinary conditions which might otherwise necessitate elevated insurance premiums or atypical construction and/or operating expenses. Finally, we assume that easements or encumbrances do not bear on the development in any significant or costly manner, and that there are no nuisances or hazards associated with the site. We are not qualified to assess these risks, as well as those associated with soil and subsoil conditions.

2.1.2 Hotel Facilities and Adventures The following are the proposed facilities, which are oriented around the Les Chateaux Mountain Resort and Adventures:

2.1.2.1 Rooms & Suites The accommodation of the Mountain Resort will all about the perfect tandem of tranquility and serenity. The hotel will be of stylish, comfortable, well-furnished and airconditioned rooms with contemporary luxury and gracious service. The types of rooms usually provided by resorts include presidential suite, family suite and standard (single or queen bed).

Commonly, the resort offers quality Mediterranean inspired hotel and touched with modern style facilities that offer home comforts, and ideals for families and travelers on holidays. Typically, local or international tourist or backpackers will stay in a room fitted with a private toilet, bath with shower and a complete television set. All rooms are non-smoking for guest's safety environment and enjoyment. In addition, the hotel will feature a balcony that welcomes picturesque mountain views. 2.1.2.2 Restaurant Food and Beverage department will occupy an integral place in the resort which plays a vital role in the profitability of the business by providing varieties of prepared foods & beverages in hospitable manner to the house & outside guest thus, taking dining as a notable encounter. To accommodate the diverse groups of customers, the resort will use tables for four that can be pushed together in spaces where there is sufficient floor area. This gives flexibility in accommodating both small and large groups of customers. There is also movable umbrella shades on the open dining areas (as proposed the facility will have open terrace on the first floor besides the indoor dining hall) so that the visitors find it comfortable having meals under the sunlight.

2.1.2.3 Function hall The resort t has a lovely event hall good for 200 people. The event hall is lined with windows that give you a great view of the green mountain. So visitors can party the night away while staying in touch with nature. 2.1.2.4 Bar Lounge The resort will feature bar lounge service that fits an adult getaway market niche and night treat. The bar will be well stocked with best of spirit and wine where guests can spend their time with gossiping watching television. The resort will be having a Music Lounge & Weekend Disco T - Equipped with the latest sound & a Light system, the disco is for those who are young at heart. The zeal to dance & enjoy is a welcome thought. A disco night on every weekend will be arranged.

2.1.2.5 Travel Desk The hotel will also have a Travel Desk, which will help visitors to gather information and sketch a tour for visiting the tourist place.

2.1.2.6 Cottages The Resort cottages are simple, very clean and comfortable enough without being lavish. The Resort will be having good numbers of cottages with a refreshing mix of style offering peace and tranquility as well as the comforts of modern day living.

2.1.2.7 Natural water fall, Swimming pool, Spa and Sauna A swimming pool will also play an important part of the resort. The pool will be perfect for doing laps. Kids are not left out of the action. There is part of the pool intended for kids to splash around in. Other services include the 24-hour massage/spa service and sauna. The Resort is also endowed with majestic natural water fall which is perfect for relaxation.

2.1.2.8 Camping Site The resort will also position a simple camping site match with the green scenery of the mountain perfect for individuals who are seeking outside adventure.

2.1.2.9 Garden In the proposed project there is also a beautiful and decorated Marriage Garden and its well kept gardens infuses a breath of fresh air and fill both young and old with vitality, which will be provided on rent for the Marriage Purpose or Parties. The capacity of the garden will be around 200 people with car parking capacity.

2.1.2.10

Zip line, Trekking, Wall climbing

These are becoming popular activities in resorts, found at outdoor adventure resorts. These are the main activities distinct from other resorts.

3. ECONOMIC ASPECT
Resorts are important in the economic vitality in the local region. More so, resorts located in remote and metropolitan areas are major contributors to regional and local economies. Moreover, with traditional industries in regional areas in decline, resort and tourism development is an alternative for employment and a means for keeping the bush alive. Travel for the purpose of holiday is the most significant component of tourism demand in Ilocos Norte, both for domestic and international travellers. Resorts are primarily in the business of providing accommodation to holiday and leisure travellers and thus play an important part in the province success as a holiday destination. Finally, in many instances, resorts are located in close proximity to icons of cultural and heritage significance and, as a consequence, have a direct involvement in natural and cultural resource presentation. In particular, bigger resorts link in with global distribution systems to sell their product and as such have a significant impact on profiling a given destination. The Les Chateaux Mountain Resort and Adventures has been designed for the rendering of services with the primary goal of offering the people with different amenities and other ways for relaxation through water activities and varied entertainment facilities for guest satisfaction. The concept of a resorts and adventures that would be very affordable to all people of different walks of life which its facilities would be at par with the international standards of providing recreation to the family. Indeed, the prospects has been very optimistic on providing every guest an "experience"- such experience to be noted as "unique" in the sense that they would feel not only satisfied but as well as delighted every time they leave the place.

With this in mind, the theme waterfalls hopping and water world finally became the final concept to which gave the resort its potential image. The biggest attraction, the cascading falls has become the centerpiece of this project. Along with this prospective establishment of resorts and adventures, the local area could attract people especially those local tourist and casual visitors residing nearby places from the planned location. Based from the number of resorts available from Currimao to Pagudpud, there are lots of resorts competing on the scale provided. However, this planned project sets out largely different resort which stands out from the stereotypical set up of usual resort such as having Cable Car, Trekking, etc. The resort will include the companys business office. The lodging cottages, hotels and water parks will accommodate many people approximately capacities of 500, 400 and 700 respectively. The resorts and adventures will fully operationalize state-of-the-art function halls and water ways systems. Basically, the utmost aim of this resort and adventures is to define the real trill and recreation in Ilocos Norte. The overall aspect and appearance will be hygienic, accessible, and pleasing to the customers. The demographies are favorable, with slightly inflexible competition from other resort parks.

Activities Customers want to Experience in a Mountain Resort


Indoor Waterparks/Pools Zip Line Trekking Rock/Wall Climbing Canopy walk Boating Ride Cable Car Others 0

52% 96% 54% 70% 50% 52% 50% 2%

104 192 108 140 100 104 100

50

100

150

200

250

Majority of the respondents answered the zip line with a total of 192 respondents followed by rock/wall climbing with 140 respondents, trekking with 108 respondents, indoor waterparks/pools and boating ride with 104 respondents each, canopy walk and cable car with 100 respondents each also, and last with 4 respondents for others like racing area. These responses having results of nearly equal or equal from each number of responses gathered can be directly attributable to the fact that only a few resorts in operating in the scope area do not have these following types of facilities. According to the report conducted entitled, Sunrise Analysis: Regulation of Ziplines and Canopy Tours, the recreational industry has adapted ziplines and elements of challenge courses to create adventure activities primarily for thrill and entertainment (some advertise cultural and environmental benets) that come in a plethora of descriptionszipline tours, canopy tours, aerial tours, treetop courses, adventure parks, and aerial trekking. These facilities are different from traditional challenge courses, because they are open to the public, built for high numbers of users, and tend to be larger. Thus, the researchers believe that incorporating hard adventures to resort business can be another attraction to the people which could greatly induce the growth of its viability to the public.

Amenities Customers are Expecting in the Resort


140 120 100 80 60 40 20

126
105 104 90
Amenities Customers are Expecting in the Resort

6
0 Spa Sauna Swimming Bath house pool Others

The graph shows the response of the respondents about their expectation that would be offered in the resort. Out of the 200 respondents, 126 of them expect that there will be Spa as an amenity (29.23%), 105 responses for Sauna (24.36%), 104 responses for swimming pool (24.13%), 90 responses for Bath house (20.88%), and the others which includes Jacuzzi and Bode massage got 6 responses (1.40%). Improving resort profitability can be done in several ways such as gaining market share, earning customer loyalty, improving a brands reputation, selling more to current markets, increasing margin, and other techniques (Reid, 1989). The management team, however, needs to understand all guests needs, wants and problems. It is import ant for the resort industry to understand what kinds of service amenities are significant to the guests. Therefore, doing research in this area will contribute to knowledge and satisfaction for the need of the guests. This information is important because service amenities are useless if the guests do not need them. In relation with the result of the data obtained regarding with this matter, the researchers deduce that relaxation is the primary reason respondents gave for visiting a spa. Pampering and stress reduction followed respectively with weight loss, health reasons and exercise and fitness at the bottom of the list. The majority of clients are visiting spas to escape the news and forget about the real world for a while.

Facilities/Services Customers want to have in a Mountain Resort


200 180 160 140 120 100 80 60 40 20 0

172 117 58 31 132 95


Facilities/Services Customers want to have in a Mountain Resort

Based from the graph above, respondents were able to determine what are the facilities or services they want to avail in the resort, they are as follows: out of 200 respondents, 172 (28.43%) answered that they want to have restaurant in the resort, 132 (21.82%) for camping site area, 117 (19.34%) for Mini Bar, 95 (15.70%) for Picnic Huts, 58 (9.59%) Butterfly Garden and 31 (5.12%) for Mini Zoo. The researchers believe that the need for restaurant in the resort is one of the basic amenities that resort should offer because visitors especially tourists are used to settle at resort where convenience and accessibility to food needs are available. According to LorriMealey, a restaurant analysis, strategic location of restaurant business should be taken in consideration where people could appease and satisfy their wants and needs. Thus, incorporating resort and restaurant is a good match due to its supplementing and complementing industry needs for possible markets. Most likely, visitors are looking for all-in-one destination where they could fully their wants and enjoy their vacation.

Amount Customers are Willing to Spend in Mini Bar


35 30 25

31 28 25

20 15 10 5 0 Below 300 300-499 500-999 1000-1499 1500 and above

18 15

Amount Customers are Willing to Spend in Mini Bar

This graph presents that amount that customers are willing to spend in Mini Bar. Out of the total respondents of 200, only 117 confirmed that they want to have a mini bar in the resort. In detail, there different groups from the 117 respondents according to their spending pattern or preference in a mini bar and most of the respondents would spent a budget of 500 to 999 with 31 responses, 28 respondents for 1500 and above, 25 respondents for 300 and below, 18 respondents for 300 to 499, while 15 respondents for 1000 to 1499. The researchers believe that those who answered that they would be willing to spend 500 to 999 are those people who belong to the 40 percent of total market, particularly these are the student bracket while those who answered that they want to spend 1500 and above are those people who are employed or self-employed. According to the Competitive Landscape of Bar Industry, personal income and entertainment needs drive demand.

Other Features Customers are Expecting to See in the Resort


160 140 120 100 80 60 40 20 0 falls Cave

151

1 6 9 1 6 1 5 1 2 1 1 2 6 1 4 1 1
Rizal Monument/ Statues of Welcome Trival Dance Dancing Fountain Hot Spring

Skydiving

Fish Pond

View deck

Fish Spa

Internet Caf/Wifi Zone

Top of the Mountain Bldg

Stargazing Activity

Undecided/None

Souveneir Shop

Parks/Garden

Function Hall

Sports Area

Other Features Costumers are Expecting to See in the Resort

The graph shows the answers of respondents about the question What are some other features customers expect to see in the resort?. The following data shows the converted percentage of the absolute result (refer to the graph): 75.50% for undecided/None, 4.50% for Falls, 3.00% for Souvenir Shop, Hot Spring and Parks/Garden, 2.50% for Internet Caf/Wifi Zone, 2.00% for Sports Area, 1.00% for View Deck and Rizal Monument/Statues of Superheroes, while others are 0.50%. The researchers believe that amenities and other facilities are needed in a resort business which has a direct or indirect connection to the lives of its visitors like for example to Business Travelers who go to resort for business conferences and meetings. Business travelers are looking for a home away from home and an office away from the office (Seo, 1997). This concept was spreading through the resort industry to serve the needs of business travelers. Most business travelers wanted resorts to make them feel like they are working with pleasures. Therefore, they wanted cleanliness, comfort, safety and attentive service (Pierson, 1996). This is primarily in the need to have an internet connection/Wifi zone in the resort to remain connected or updated to follow-ups in the work office especially to business travelers staying on resorts.

Viability of the Resort to the Public


250 200

191
150 100 50 Viability of the Resort to the Public

6
0 YES NO

3
UNDECIDED

The graph shows the result of the question about the Viability of the Resort to the public. Based from the graph, out of the total number of respondents, 191 answered affirmatively while 6 responded negatively, and others are undecided. The researchers believe that most of the responses were affirmative because they are looking forward to these new offers that they could enjoy and avail in a totally new and different resort that proposes distinctive amenities and facilities.

3.1 DEMAND CYCLE The following graphs shows seasons the customers are expected to visit and the days of expected visit.

Seasons costumers are expected to visit


100 90 80 70 60 50 40 30 20 10 0 January-March April-June July-September October-December

Days of Expected Visit


180 160 140 120 100 80 60 40 20 0 Monday Tuesday Wednesday Thursday Friday Saturday Sunday

Based to the data gathered, the most popular months for travel by tourists domestically were April to June (Summer) garnering 95 out of 227 respondents or 41.85 % of the total sample and during October to December (Christmas season) garnering 80 out of 227 respondents or 35.24 % of the total sample. Peak travel periods in the resort are strongly correlated with the occurrence of summer and holidays. On the other hand, lean season include the months of July to September garnering 18 out of 227 respondents or 7.93% of the total sample. This is because of the fact that these months are the season of storms or wet season. Resorts including mountain resorts are very seasonal destination with visitation heavily concentrated in the summer months. While significant efforts have been made over the years to build the shoulder seasons in the province, tourism is expected to continue to be a seasonal business. The warm weather months from April- June will likely continue to be the core tourism season for many types of tourism experiences in Ilocos Norte. While seasonality is a reality for many tourism attractions, there are initiatives that can lessen its impact. Having the diversity of services and amenities available on a regular basis outside the summer months to support off peak visitation may expand to a year round destination.

Day visits from the resort are also concentrated in the weekends, so initiatives and packages that give people a reason (e.g. events) or incentive (e.g. pricing discounts) to visit outside these times should be a key focus.

3.2 MARKET SEGMENTATION The Les Chateaux Mountain Resort and Adventures composing of hotel, resort(pool and waterfalls), restaurant, function hall, different options of adventures such as wall climbing, cable car, zip line, trekking etc will be a one of a kind that offers services to the customers that guarantees an enjoyable experience with full satisfaction. The Les Chateaux Mountain Resort and Adventures aims to cater a diverse market with a spread range of prospective customers. More so, itsforemost objective is to make all its customers have the best feeling to relax in a gratifying ambiance with lots of services at its finest. The general public, particularly the local tourists are the target market of the business although in a segmented scope, it can be separated into the following categories: 3.2.1 Vacationers/ Tourists The tendencies or chances that local/foreign tourists to visit the resorts park are high since it involve largely varied facilities to offer than those resorts in the local area of Currimao, and the proximity of the site location of the resort from local airport(s)/seaport(s) and from nearby cities and localities as compared to Pagudpud Area. Tourist and vacationers find great places for relaxation and distressing means where it could greatly satisfy their needs and wants. The province had numerous of tourist visiting the local area who can avail of themselves to spend on highly standardized resort park. Thus, this could apparently open a big opportunity to take advantage of the future profitability of the resort because of these markets. With the availability of this first-ever indoor waterpark and multi-

faceted resorts and adventures in the Ilocos Norte, they will opt to choice to spend the maor portion of their income for these amenities and features. At present, according to Xavier Ruiz of PTO, the surge consists of around 5,000 local and international tourists who came into the province during the previous long weekend alone (February 22 to 25 of the Year 2013).He also added that major resorts and hotels in the province are even already at 100% occupancy as of Feb. 22, and the rest reporting 50% and above which is still expected to climb up for the upcoming summer holidays. The breakdown of arrivals showed an increase in the number of European tourists, particularly Swedish and Russians and in the number of Asian tourists like Indonesians, Japanese and Koreans. Meanwhile, the domestic movement is due to several Lakbay-Aral activities and corporate functions by various groups across the country such as a recent national convention of Filipino architects which resulted to a total of 400 delegates. Through the active tourism campaign by the Provincial Government, Ilocos Norte is likely to get the same or even higher number of tourist arrivals by the end of the summer season just like last years 680,000the provinces highest rise in tourist arrivals so far, Ruiz said. At the provincial level, the province of Ilocos Norte, with 183,220 tourist arrivals in 2008, catered to majority (51.9%) of the tourists in the region in 2008. Although the influx of foreign tourists steadily declined for the past three years, Ilocos Norte continued to be the favorite hub of foreign tourists in Region 1. This could be due to the presence of the International Airport and tourist attractions in the province like the white beaches of Pagudpud. A total of 20,457 foreign tourists visited the province in 2008, which comprised majority of all foreign tourists in the region. Based on the same data set, the province had the most number (19 out of 50) of accredited tourist establishments in the region, consisting of resorts, tourist inns, hotels and pension/motels. The province also registered the highest average length of stay of tourists from 2006-2008 at 1.7 days, higher than the regional average length of stay of 1.2 days during the sa me period.

(http://www.skyscrapercity.com/showthread.php?t=1583374&page=88)

"Economic indicators point out that Ilocos Norte is the leading province in terms of tourist arrivals based on statistics compiled by the Department of Tourism (DOT) regional office from tourist-oriented establishments, thus for 2012 we expect more tourists to arrive in the province and we have to be ready,"

(http://www.laoagcity.gov.ph/index.php?option=com_content&view=article&id=299:provi ncial-government-offers-free-ride-to-tourists-ofws-tourism-boom-in-2012-gov-imee&catid=13:news Figure1. Percentage Distributions of Tourists by Province, Region 1, 2005-2008

Distribution of Tourists
Pangasinan 16%

Ilocos Norte Ilocos Sur

La Union 18%

Ilocos Norte 52%

La Union Pangasinan

Ilocos Sur 14%

Source of Data: Department of Tourism Regional Office 1 Note: Ilocos Sur, La Union and Pangasinan are indirect competitor on tourist destination at the Regional Scope. The survey conducted revealed that the majority of the customers of this resorts and adventures will be the employed and self-employed individuals. Based on the survey results the employment statuses of the respondents are follows: Of the total of 200 respondents, 80 are students, 52 are employed, 56 are self-employed, and 12 are unemployed.

Employment Status
6% 40% 28%

26%

Employed Self-Employed Students Unemployed

There are some available rationalizations of other respondents why they avail of themselves in enjoying the resort experience, these are as follows: For recreation moment and relaxation as well considering the hectic schedule in their job or school activities or as a means of celebration after school year or during some special occasions like birthday. For family treat moments especially Filipinos are known in valuing much of their family and relatives. For pleasure tripping and want satisfaction For diverting or channeling out their worries and problems in life.

3.2.2 Tertiary Students( Middle Adulthood Individuals) Youth especially those individuals whose age range from 18-23 years old will take the offer to enjoy the resort and its amenities and make use of the services and accommodations mostly for a reasons of hanging out, consume the vacation periods and breaks from school stuffs. Its amenities and features are of the great attraction of the resort in which students at their exploration stages encourage them a lot to spend time over this value.

Age Group of Prospective Market


40% 35% 30% 25% 20% 15% 10% 5% 0% 17 years old and below 18 to 23 years old 24 to 29 years old 30 to 35 years old 36 years old and above

37%

22% 11%

14%

16%

The graph presents the age groups of the respondents. Of the 200 respondents, 22 of them are 17 years old and below, 74 of them are 18 to 24 years old, 44 of them are 24 to 29 years old, 28 of them are 30 to 35 years old and 32 of them are 36 years old and above. 3.2.3 Families, Children and Business Man There are different people with different purpose why they go to resorts, but most of them go for fun and enjoyment. People went through heavy workloads for money such as businessmen. They are the one who need de-stressing ways from the tensions and pressures they get from whole day activities. Primarily, opting to go to resorts are the best choice for them. Thus, this gives additional opportunity for this resort to become potentially profitable. Family-wise, it is worth time spending to stay at a resort where lots of fun and quality times are spent and where services offered are best ways for them to seize the day under the sun. It is the best place for a family escapade. Mostly, families will come and stay because of those accommodative offers and affable services available at the resort where excellent value are created and built.

3.3 SUPPLY The Philippine economy has been growing steadily over decades transitioning from one based on agriculture to one based more on services and manufacturing thus attaining its status of being a newly industrialized country. However, the occurrence of high inflation rate subsists. This denotes that fluctuations on the prices of goods and services offered in the market are recurrently shifting. Les Chateaux Mountain Resort and Adventures aims to negotiate and contract with suppliers who offer lower prices in comparison with others without compromising its quality. Proper evaluation of dealers where the supplies that are necessary in carrying-out the operations of the hotel, which includes the restaurant, bar and other amenities, are sourced out should be prioritized. This ensures that adequate number of supplies is attained, quality is not traded-off and shortage in catering the demand of the customers is eliminated. 3.3.1 Capacity to Produce The supply needed in the operation of the hotel such as food ingredients, alcoholic drinks and commodities necessary in hotel rooms are obtained easily since production sites of large manufacturers and business wholesalers of some of these necessities are presently located in the province. Moreover, the degree of product visibility of these necessities in the province is high which means that importation from other places is not necessary. 3.3.2 Factors Affecting Product Supply Price is the main factor that affects supply. When the price of products goes down, the higher the supply and when the price goes up, the lower the supply. This could create a material and pervasive effect as to the supply needed in the operation of the hotel. The occurrence of inflation only affects the hotel restaurants food ingredients necessary in preparing dishes since its price is dependent on some economic factors. The supply of alcoholic drinks that are needed in the hotel bar follows an expanded process since its purchasing price in the market is almost consistent and stable.

Nevertheless, the occurrence of unforeseen and uncontrollable events and conditions could impinge on the supply of the hotels needs. As a result, a regression in the reven ue receipts and income generating activities of the hotel are experienced. 3.3.3 Suppliers Table 3.3.3-1 Supplier Details BAR AND RESTAURANT Venvi-Agro Industrial Corporation. A corporation that produces poultry and pork products. Local vegetable and fish suppliers within the province and nearby cities.

Food Ingredients

Coca-cola Corporation. An American multinational beverage corporation and manufacturer, retailer and marketer of nonalcoholic beverage concentrates and syrups with bottling plant in Ilocos. Soft drinks and Fruit Juices Del Monte Corporation. A leading producer of pineapple and other food products which markets over 100 processed food and beverage variants, including pineapple solids (slices, tidbits, chunks), tropical mixes, pineapple juice and mixed drinks, San Miguel Brewery, Inc. Philippines' largest business conglomerates with interests in beer production and other alcoholic beverages. San Roberto Wine Mart. A shop that offers retail and wholesale of wines and liquors. Pure Water Refilling Station. A water refilling station with branches located in various parts of the province that offers purified water.

Alcoholic Drinks

Purified Water

4. TECHNICAL ASPECT
4.1 THE PLAN The proposed business is a mountainside resort and adventure with the name Les Chateaux Mountain Resort and Adventures. The venture aims to develop and enrich the clandestine beauty of Capasan, Bacsil and Espiritu waterfalls and make it a recognized tourist attraction in the municipality and in the whole province. To realize its objective, a modern luxury hotel equipped with numerous amenities such as restaurant, bar, spa and sauna bath will be built near the vicinity of the falls to cater the demand for a place of tranquility and serenity for the tourists. To further lure in demand, a range of adventure activities will be offered to customers such as zip line and rock climbing. Trekking and camping in close proximity to the waterfalls will also be available. The resort is planned to be a six-story building which will house 100 hotel rooms, a restaurant, a bar, a spa, a souvenir shop and a function hall. However, the six-storey building will be built in a series of expansion processes. On its first years of operation, a two-storey building will be built with a 20 room capacity. On the businesss succeeding years of operation wherein favorable results of revenue will be realized, two additional floors will be added to the hotel building in which 40 hotel rooms will be added. Lastly, on its last expansion program, another 2 additional floors with 40 hotel rooms will be built to complete the planned six-storey building and 100 hotel rooms. 4.2 LOCATION Les Chateaux Mountain Resort and Adventures will be located at Barangay Capasan, Dingras, Ilocos Norte.

4.3 PRODUCTION PROCESS Table 4.3-1 Hotel Restaurant STEPS Purchasing DESCRIPTION Buying of raw materials and supplies that will be used for the operation of the business. Receipt of purchased raw materials and supplies. To secure the quality of the product and to avoid infectivity. Storing the raw materials and supplies to assure and maintain its quality. Preparing all the necessary materials for cooking and producing the restaurant dishes. Involves equipment like gas range. In preparation for the next phase. Food is prepared for serving to customers. Distributing the food and drinks the customers ordered. Presenting the customer its amount due. Receiving payments of the customers. Getting everything left on the used tables. Wiping of tables, arranging of chairs and washing of used utensils.

Receiving

Inspecting

Storing

Preparing

Cooking Holding Plating

Serving

Billing Collecting Clearing

Cleaning

4.3-2

Hotel Bar STEPS DESCRIPTION Buying of raw materials, supplies and alcoholic beverages that will be used for the operation of the business. To secure the quality of the product and to avoid contamination. Storing the raw materials and supplies to assure and maintain its quality. Preparing all the necessary materials for mixing cocktails and alcoholic beverages. Quantitatively distributing of alcoholic drinks the customers ordered. Presenting the customer its amount due. Receiving payments of the customers. Getting everything left on the used tables. Wiping of tables, arranging of chairs and washing of used utensils.

Purchasing

Inspecting

Storing

Preparing

Serving

Billing Collecting Clearing

Cleaning

4.4 EQUIPMENT AND MACHINERY REQUIREMENT The basic requirements for the mountainside hotel include furniture and fixture, electronics such as TV/DVD, multimedia, fridge, air conditioners, telephone and computer. These equipments are easily and readily available in the local markets. 4.4.1 Pre-operating Investment On the commencement of the business, the fixed investments necessary for the operation of the hotel have a total cost of Php 7, 738,762.50. This amount comprises the costs of 20 hotel rooms including the hotels amenities. The details of the fixed capital and working capital investments are shown below: Table 4.4.1-1 Hotel Rooms and Lobby Details
ELECTRONIC DEVICES Item Description
PRESIDENTIAL SUITE SAMSUNG AS12TSLN/X 1.5HP standard split DOUBLE BED SUITE AND FAMILY SUITE SAMSUNG Wall Mounted Split Type RAC System ASV09ESLN 690Watts Power Consumption (Cooling) TYPICAL ROOM (SINGLE BED) SAMSUNG RAC Window System AW09L1B 635Watts Power consumption (Cooling) LOBBY SAMSUNG Inverter Cassette NS244HXBA 14.8 kj/wh Power Consumption (Cooling) PRESIDENTIAL SUITE LG 32'' 32LS3400 HD LED TV 70Watts Power Consumption TYPICAL ROOM (SINGLE BED), DOUBLE SUITE AND FAMILY SUITE LG 20'' E2041T Super LED Monitor 20Watts Power Consumption

Unit Cost Php 26,298.00

Quantity 2 Php

Total Cost 52,596.00

Php

22,998.00

13

Php

298,974.00

AIR CONDITION

Php

13,700.00

Php

68,500.00

Php

56,000.00

Php

336,000.00

Php

17,990.00

Php

35,980.00

TELEVISION SET

Php

5,200.00

18

Php

93,600.00

TELEPHONE COMPUTER

ALL HOTEL ROOMS AND LOBBY PANASONIC TEL KX-TS500MXB BLK Acer Veriton X2611G 3.3 GHz, Intel Core i3, i3-3220, 4 GB, DDR3-SDRAM, 16 GB LIR60HF Outdoor Camera 50m Weatherproof IR Camera VS-142F Indoor Camera Dome Camera

Php Php Php Php

510.00 21,500.00 3,200.00 1,600.00

38 2 10 15

Php Php Php Php

19,380.00 43,000.00 32,000.00 24,000.00

CCTV CAMERA

LIGHT POINT OF SALES

Light Gold and Crystal Chandelier TOSHIBA WILLPOS A20 Intel Core2 Duo T7400 (2.16GHz)

Php Php ROOM

40,950.00 27,900.00

6 1

Php Php

245,700.00 27,900.00

Item Description
PRESIDENTIAL SUITE URATEX Perfect Serenity Foam Mattress- KING SIZE 8x72x78 TYPICAL ROOM (SINGLE BED), DOUBLE BED SUITE AND FAMILY SUITE URATEX Perfect Serenity Foam Mattress 8x48x75 Magic Pillow ALL HOTEL ROOMS PRESIDENTIAL SUITE 6321-1W CHROME WALL LAMP ML1215 RING FLOOR LAMP MT1249BK MODERN TABLE LAMP

Unit Cost Php 18,500.00

Quantity 2 Php

Total Cost 37,000.00

BED

Php Php Php Php Php Php Php

13,000.00 250.00 1,000.00 800.00 3,300.00 1,600.00 4,000.00

39 220 50 4 4 6 2

Php Php Php Php Php Php Php Php

507,000.00 55,000.00 50,000.00 3,200.00 13,200.00 9,600.00 8,000.00 43,400.00 50,400.00 14,400.00

PILLOW BLANKET

LIGHTS

5026/8 CRYSTAL LEAF CHANDERLIER LIGHT TYPICAL ROOM (SINGLE BED), DOUBLE BED SUITE AND FAMILY SUITE 6316-1W MODERN WALL LAMP MT1215-L RING TABLE LAMP 6151/32W BRUSHED CEILING LAMP

Php Php Php BATHROOM

700.00 1,800.00 800.00

62 28 18

Php Php

Item Description
PRESIDENTIAL SUITE Image Direct-mount Shower System D20S TYPICAL ROOM (SINGLE BED), DOUBLE BED SUITE AND FAMILY SUITE WIL Exposed Bath & Shower Mono (with handshower set) TYPICAL ROOM (SINGLE BED), DOUBLE BED SUITE AND FAMILY SUITE Modern Faucet PRESIDENTIAL SUITE Cygnet Single-Hole Sensor Lavatory Faucet PRESIDENTIAL SUITE New Codie Chain Type 1500x700x420 Bath Towel Face Towel PRESIDENTIAL SUITE Mirror Flair TYPICAL ROOM (SINGLE BED), DOUBLE BED SUITE AND FAMILY SUITE Bathroom Mirror

Unit Cost Php Php 23,870.00 2,152.00

Quantity 2 18 Php Php

Total Cost 47,740.00 38,736.00

SHOWER

Php Php Php Php Php Php Php

2,590.00 5,136.00 12,420.00 740.00 260.00 1,325.00 899.75

18 2 2 150 150 2 18

Php Php Php Php Php Php Php

46,620.00 10,272.00 24,840.00 111,000.00 39,000.00 2,650.00 16,195.50

FAUCET

BATH TUB TOWEL

MIRROR

FURNITURE AND FIXTURES Item Description


PRESIDENTIAL SUITE E1956B PRISM PROFILE END TABLE TYPICAL ROOM (SINGLE BED), DOUBLE BED SUITE AND FAMILY SUITE A01 Solid Wood Night Table

Unit Cost Php 3,500.00

Quantity 4 Php

Total Cost 14,000.00

BEDSIDE TABLE

Php

2,950.00

53

Php

156,350.00

DRESSER CABINETS AND DRAWERS

PRESIDENTIAL SUITE A836 DRESSING TABLE WITH STOOL PRESIDENTIAL SUITE MF80036 2DOOR SLIDING WARDROBE TYPICAL ROOM (SINGLE BED), DOUBLE BED SUITE AND FAMILY SUITE 0371 2-D WARDROBE PRESIDENTIAL SUITE SYLVIA CHAISE LOUNGE CHAIR TYPICAL ROOM (SINGLE BED), DOUBLE BED SUITE AND FAMILY SUITE ZANE SOLID WOOD ARMCHAIR LOBBY/RECEIVING AREA GAVINO CORNER SOFA LOBBY ALL HOTEL ROOMS

Php Php Php Php Php Php Php Php

7,500.00 12,500.00 9,000.00 9,000.00 1,850.00 18,000.00 20,000.00 200.00

2 2 18 4 36 3 2 50

Php Php Php Php Php Php Php Php

15,000.00 25,000.00 162,000.00 36,000.00 66,600.00 54,000.00 40,000.00 10,000.00

CHAIR

SOFA COUNTER TABLE TRASH BINS

GRAND TOTAL Table 4.4.1-2 Hotel Restaurant Details


ELECTRONIC DEVICES AND KITCHEN EQUIPMENT Item Description AIR CONDITION POINT OF SALES COMPUTER TELEPHONE LIGHT SOUND SYSTEM CCTV CAMERA MICROWAVE OVEN REFRIGERATOR FREEZER BLENDER
SAMSUNG RAC Window System AW09L1B 635Watts Power consumption (Cooling) TOSHIBA WILLPOS A20 Intel Core2 Duo T7400 (2.16GHz) Acer Veriton X2611G 3.3 GHz, Intel Core i3, i3-3220, 4 GB, DDR3SDRAM, 16 GB PANASONIC TEL KX-TS500MXB BLK 5026/8 CRYSTAL LEAF CHANDERLIER LIGHT Pioneer 5.1 Audio System VS-142F Indoor Camera Dome Camera ELECTROLUX MWO EMS2047X 7 CF Microwave Oven with Grill. LG GR-B207CLC FUJIDENZO FC 22ADF CHEST FREEZER CHILLER IN 1 HANABISHI HJB 115 4SPD

Php

3,136,169.50

Unit Cost Php Php Php Php Php Php Php Php Php Php Php 13,700.00 27,900.00 21,500.00 510.00 4,000.00 10,000.00 1,600.00 5,700.00 47,995.00 31,450.00 728.00

Quantity 4 1 1 2 5 1 5 1 2 1 2 Php Php Php Php Php Php Php Php Php Php Php

Total Cost 54,800.00 27,900.00 21,500.00 1,020.00 20,000.00 10,000.00 8,000.00 5,700.00 95,990.00 31,450.00 1,456.00

BREAD TOASTER COFFEE MAKER WATER DISPENSER GAS RANGE WITH OVEN

KYOWA BREAD TOASTER KW-2510 DOWELL COFFEE BROILER CB-150SS 100C 16 Liters Capacity / 100 Cups SAPOE CHV 223DC hot and cold dispenser Vulcan Endurance Gas Range 10 Burners - 2 Ovens - 60-SS-10B-P

Php Php Php Php

398.00 4,300.00 5,400.00 95,000.00

2 1 1 1

Php Php Php Php

796.00 4,300.00 5,400.00 95,000.00

FURNITURE AND FIXTURES Item Description


SQUARE TABLE 24X48 RECTANGLE WITH DOUBLE STAND

Unit Cost Php Php Php Php Php Php Php Php 2,400.00 3,500.00 20,000.00 12,500.00 1,200.00 5,100.00 13,000.00 28,400.00

Quantity 15 7 2 2 110 2 2 2 Php Php Php Php Php Php Php Php

Total Cost 36,000.00 24,500.00 40,000.00 25,000.00 132,000.00 10,200.00 26,000.00 56,800.00

TABLE
COUNTER TABLE-MARBLE TOP LONG TABLE

CHAIRS SHELVES CABINET DRAWER CHEST

Upholstered Back Chair 18" Seat Height, 16"Wx18"D Restaurant Shelving - Heavy Duty 48"Wx18"Dx74"H Chrome 4 Shelf Kit Kitchen Cabinet Kitchen Drawer Chest

COMFORT ROOM Item Description FAUCET BOWL MIRROR


Customer's Comfort Room Toilet Bowl Set Bathroom Rectangle Mirror

Unit Cost Php Php Php 2,460.00 6,700.00 2,300.00

Quantity 5 5 3 Php Php Php

Total Cost 12,300.00 33,500.00 6,900.00

Item Description GLASS SPOON


Stainless Steel Serving Spoon Glasswares Stainless Steel Spoon

KITCHEN UTENSILS Unit Cost Php Php Php Php Php Php Php Php Php 150.00 170.00 180.00 170.00 350.00 200.00 480.00 600.00 800.00

Quantity 500 500 500 400 500 500 250 50 10 Php Php Php Php Php Php Php Php Php

Total Cost 75,000.00 85,000.00 90,000.00 68,000.00 175,000.00 100,000.00 120,000.00 30,000.00 8,000.00

FORK PLATES CUP TRAYS FRYING PAN COOKWARE SET

Stainless Steel Fork Ceramic Plates Ceramic Cups Service Trays Teflon Coated Pan Stainless Steel Cookware Set

KNIFE SET BOWL CHOPPING BOARD MEASURING SPOONS MEASURING CUPS

Complete Knife Set Soup Bowl Plastic Chopping Board Plastic Measuring Spoons Plastic Measring Cups

Php Php Php Php Php

1,300.00 220.00 400.00 120.00 120.00

3 500 10 5 5

Php Php Php Php Php

3,900.00 110,000.00 4,000.00 600.00 600.00

GRAND TOTAL Table 4.4.1-3 Hotel Bar Details


ELECTRONIC DEVICES Item Description AIR CONDITION TELEVISION SET SOUND SYSTEM CCTV CAMERA TELEPHONE FREEZER REFRIGERATOR BLENDER LIGHT
SAMSUNG RAC Window System AW09L1B 635Watts Power consumption (Cooling) LG 32'' 32LS3400 HD LED TV 70Watts Power Consumption Pioneer 5.1 Audio System VS-142F Indoor Camera Dome Camera PANASONIC TEL KX-TS500MXB BLK FUJIDENZO FC 22ADF CHEST FREEZER CHILLER IN 1 LG GR-B207CLC HANABISHI HJB 115 4SPD 5026/8 CRYSTAL LEAF CHANDERLIER LIGHT

Php 1,656,612.00

Unit Cost Php Php Php Php Php Php Php Php Php 13,700.00 17,990.00 10,000.00 1,600.00 510.00 31,450.00 47,995.00 728.00 4,000.00

Quantity 2 2 1 5 2 1 1 2 5 Php Php Php Php Php Php Php Php Php

Total Cost 27,400.00 35,980.00 10,000.00 8,000.00 1,020.00 31,450.00 47,995.00 1,456.00 20,000.00

TABLE

FURNITURE AND FIXTURES Unit Cost Item Description SQUARE TABLE Php 2,400.00 20-06 Round Bar Table Php 2,990.00 COUNTER TABLE-MARBLE TOP Php 20,000.00 LONG TABLE Php 12,500.00
Upholstered Back Chair 18" Seat Height, 16"Wx18"D B-106 BAR CHAIR 37cm w | 42cm d | 110cm h Shelving - Heavy Duty 48"Wx18"Dx74"H Chrome 4 Shelf Kit Display Cabinet Drawer Chest

Quantity 10 15 2 2 40 30 2 2 1

Php Php Php Php Php Php Php Php Php

Total Cost 24,000.00 44,850.00 40,000.00 25,000.00 48,000.00 30,000.00 10,200.00 21,600.00 15,600.00

Php Php Php Php Php

1,200.00 1,000.00 5,100.00 10,800.00 15,600.00

CHAIRS SHELVES DISPLAY CABINET DRAWER CHEST

GLASSWARES

Item Description Red Wine Glasses

GLASSWARES Unit Cost Php 200.00

Quantity 200

Php

Total Cost 40,000.00

White Wine Glasses Brandy Glasses Cocktail Glasses Collins High Ball Glasses Shot Glasses

Php Php Php Php Php Php

200.00 120.00 120.00 48.00 30.00 20.00

200 200 200 200 200 200

Php Php Php Php Php Php

40,000.00 24,000.00 24,000.00 9,600.00 6,000.00 4,000.00

GRAND TOTAL

Php

590,151.00

Table 4.4.1-4 Hotel Function Hall Details


ELECTRONIC DEVICES Item Description AIR CONDITION SOUND SYSTEM CCTV CAMERA TELEPHONE PROJECTOR LIGHT COMPUTER
SAMSUNG Inverter Cassette NS244HXBA 14.8 kj/wh Power Consumption (Cooling) Pioneer 5.1 Audio System VS-142F Indoor Camera Dome Camera PANASONIC TEL KX-TS500MXB BLK TOSHIBA Projector 6000 hours Lamp Life (eco mode) 3D Ready Light Gold and Crystal Chandelier Acer Aspire V5-431P-997B2G50Mass P997 500GB

Unit Cost Php Php Php Php Php Php Php 56,000.00 10,000.00 1,600.00 510.00 24,900.00 40,950.00 15,000.00

Quantity 6 4 5 2 2 4 2 Php Php Php Php Php Php Php

Total Cost 336,000.00 40,000.00 8,000.00 1,020.00 49,800.00 163,800.00 30,000.00

TABLE CHAIRS

FURNITURE AND FIXTURES Unit Cost Item Description Php 2,200.00 ROUND TABLE- 8 seats Php 12,500.00 LONG TABLE
Tiffany Chairs Budget Chiavari

Quantity 25 10 200

Php Php Php

Total Cost 55,000.00 125,000.00 198,000.00

Php

990.00

GRAND TOTAL Table 4.4.1-5 Souvenir Shop Details


ELECTRONIC DEVICES Item Description AIR CONDITION RADIO SYSTEM CCTV CAMERA TELEPHONE LIGHT COMPUTER POINT OF SALES
SAMSUNG Inverter Cassette NS244HXBA 14.8 kj/wh Power Consumption (Cooling) Pioneer 5.1 Audio System VS-142F Indoor Camera Dome Camera PANASONIC TEL KX-TS500MXB BLK 6151/32W BRUSHED CEILING LAMP Acer Aspire V5-431P-997B2G50Mass P997 500GB TOSHIBA WILLPOS A20 Intel Core2 Duo T7400 (2.16GHz)

Php 1,006,620.00

Unit Cost Php Php Php Php Php Php Php 56,000.00 10,000.00 1,600.00 510.00 800.00 15,000.00 27,900.00

Quantity 2 1 5 1 4 2 1 Php Php Php Php Php Php Php

Total Cost 112,000.00 10,000.00 8,000.00 510.00 3,200.00 30,000.00 27,900.00

FURNITURE AND FIXTURES Unit Cost Item Description SHELVES COUNTER TABLE Display Shelves - Heavy Duty 48"Wx18"Dx74"H Chrome 4 Shelf Kit CASHIER'S COUNTER Php Php 5,100.00 10,000.00

Quantity 5 1 Php Php

Total Cost 25,500.00 10,000.00

GRAND TOTAL Table 4.4.1-6 Hotel Amenities Details


Other Amenities SPA WALL CLIMBING CAMPING EQUIPMENT RENTALS - Camping Site SWIMMING POOL- Adult and Kid's Pool SAUNA ZIPLINE EQUIPMENTS Total Cost Php Php Php Php Php Php

Php

199,210.00

150,000.00 180,000.00 50,000.00 200,000.00 280,000.00 290,000.00

GRAND TOTAL Table 4.4.1-7 Cost Summary Details


Hotel Amenities Hotel Rooms and Lobby Hotel Restaurant Hotel Bar Function Hall Souvenir Shop Other Amenities

Php 1,150,000.00

Total Cost Php Php Php Php Php Php 3,136,169.50 1,656,612.00 590,151.00 1,006,620.00 199,210.00 1,150,000.00

GRAND TOTAL

Php 7,738,762.50

4.4.2 Expansion Programs The business will undergo two expansion programs which will increase the hotels operational capacity. On its first expansion project, 40 additional hotel rooms will be constructed and under its second expansion program, another 40 rooms will be added to the hotel. The additional fixed investments necessary for the operation of the hotel under each expansion program have a total cost of Php 5,060,189.00. The details of the additional fixed capital and working capital investments are shown below:

Table 4.4.2-1

Expansion Program Cost Details


ELECTRONIC DEVICES Item Description
PRESIDENTIAL SUITE SAMSUNG AS12TSLN/X 1.5HP standard split DOUBLE BED SUITE, FAMILY SUITE SAMSUNG Wall Mounted Split Type RAC System ASV09ESLN 690Watts Power Consumption (Cooling) TYPICAL ROOM (SINGLE BED) SAMSUNG RAC Window System AW09L1B 635Watts Power consumption (Cooling) LOBBY SAMSUNG Inverter Cassette NS244HXBA 14.8 kj/wh Power Consumption (Cooling) PRESIDENTIAL SUITE LG 32'' 32LS3400 HD LED TV

Unit Cost Php 26,298.00

Quantity 4 Php

Total Cost 105,192.00

Php

22,998.00

26

Php

597,948.00

AIR CONDITION

Php Php

13,700.00 56,000.00

10 12

Php Php

137,000.00 672,000.00

Php

17,990.00

Php

71,960.00

TELEVISION SET

70Watts Power Consumption TYPICAL ROOM (SINGLE BED), DOUBLE SUITE AND FAMILY SUITE LG 20'' E2041T Super LED Monitor 20Watts Power Consumption ALL HOTEL ROOMS AND LOBBY PANASONIC TEL KX-TS500MXB BLK VS-142F Indoor Camera Dome Camera

Php Php Php ROOM

5,200.00 510.00 1,600.00

36 76 8

Php Php Php

187,200.00 38,760.00 12,800.00

TELEPHONE CCTV CAMERA

Item Description
PRESIDENTIAL SUITE URATEX Perfect Serenity Foam Mattress- KING SIZE

Unit Cost Php 18,500.00

Quantity 4 Php

Total Cost 74,000.00

BED

8x72x78 TYPICAL ROOM (SINGLE BED), DOUBLE BED SUITE AND FAMILY SUITE URATEX Perfect Serenity Foam Mattress 8x48x75 Magic Pillow ALL HOTEL ROOMS PRESIDENTIAL SUITE 6321-1W CHROME WALL LAMP ML1215 RING FLOOR LAMP MT1249BK MODERN TABLE LAMP

Php Php Php Php Php Php Php

13,000.00 250.00 1,000.00 800.00 3,300.00 1,600.00 4,000.00

78 220 100 8 8 12 4

Php Php Php Php Php Php Php Php

1,014,000.00 55,000.00 100,000.00 6,400.00 26,400.00 19,200.00 16,000.00 77,000.00 100,800.00 28,800.00

PILLOW BLANKET

LIGHTS

5026/8 CRYSTAL LEAF CHANDERLIER LIGHT TYPICAL ROOM (SINGLE BED), DOUBLE BED SUITE AND FAMILY SUITE 6316-1W MODERN WALL LAMP MT1215-L RING TABLE LAMP 6151/32W BRUSHED CEILING LAMP

Php Php Php

700.00 1,800.00 800.00

110 56 36

Php Php

BATHROOM Item Description


PRESIDENTIAL SUITE Image Direct-mount Shower System D20S

Unit Cost Php 23,870.00

Quantity 4 Php

Total Cost 95,480.00

SHOWER

TYPICAL ROOM (SINGLE BED), DOUBLE BED SUITE AND FAMILY SUITE WIL Exposed Bath & Shower Mono (with handshower set) TYPICAL ROOM (SINGLE BED), DOUBLE BED SUITE AND FAMILY SUITE

Php

2,152.00

36

Php

77,472.00

Php Php Php Php Php Php Php

2,590.00 5,136.00 12,420.00 740.00 260.00 1,325.00 899.75

36 4 4 300 300 4 36

Php Php Php Php Php Php Php

93,240.00 20,544.00 49,680.00 222,000.00 78,000.00 5,300.00 32,391.00

FAUCET

Modern Faucet PRESIDENTIAL SUITE Cygnet Single-Hole Sensor Lavatory Faucet PRESIDENTIAL SUITE

BATH TUB TOWEL

New Codie Chain Type 1500x700x420 Bath Towel Face Towel PRESIDENTIAL SUITE Mirror Flair

MIRROR

TYPICAL ROOM (SINGLE BED), DOUBLE BED SUITE AND FAMILY SUITE Bathroom Mirror

FURNITURE AND FIXTURES Item Description


PRESIDENTIAL SUITE

Unit Cost Php Php Php Php Php Php Php Php 3,500.00 2,950.00 7,500.00 12,500.00 9,000.00 9,000.00 1,850.00 200.00

Quantity 8 53 4 4 36 8 36 80 Php Php Php Php Php Php Php Php

Total Cost 28,000.00 156,350.00 30,000.00 50,000.00 324,000.00 72,000.00 66,600.00 16,000.00

BEDSIDE TABLE

E1956B PRISM PROFILE END TABLE TYPICAL ROOM (SINGLE BED), DOUBLE BED SUITE AND FAMILY SUITE A01 Solid Wood Night Table PRESIDENTIAL SUITE A836 DRESSING TABLE WITH STOOL PRESIDENTIAL SUITE

DRESSER

CABINETS AND DRAWERS

MF80036 2DOOR SLIDING WARDROBE TYPICAL ROOM (SINGLE BED), DOUBLE BED SUITE AND FAMILY SUITE 0371 2-D WARDROBE PRESIDENTIAL SUITE SYLVIA CHAISE LOUNGE CHAIR

CHAIR

TYPICAL ROOM (SINGLE BED), DOUBLE BED SUITE AND FAMILY SUITE ZANE SOLID WOOD ARMCHAIR

TRASH BINS

ALL HOTEL ROOMS

GRAND TOTAL

Php 5,060,189.00

4.4.3 Overall Investment


Les Chateaux Resort and Adventure has an estimated cost of fixed investments of Php 17,

859,140.5 This amount includes the cost of the hotel rooms, restaurant, bar, spa, sauna, function hall and all other amenities. The fixed investments needed in the expansion programs were included in the aforementioned amount.

4.5 LAND AND BUILDING REQUIREMENT 4.5.1 Land Required The land area that will be acquired is 5 hectares with an estimated cost of Php 5,000,000 based on its current zonal value. The cost of the land includes all other expenses such as land assessment. 10,620 m2 of the land acquired will be developed by the business and will incur an estimated cost of Php 2, 655,000. The mentioned amount includes improvement of road access to the hotel, improvement of trekking trails and camping sites. Table 4.5.1-1 Land Cost Details
Description Land* Area Required 50,000 m
2

Price per Area 100

Total Cost Php 5,000,000

*includes cost of land assessment and other acquisition costs

Table 4.5.1-2 Site Development Cost Details


Description Area Required
2

Construction rate per area** 250

Total Cost Php 2,655,000

Site Development Cost* 10,620 m *includes the development cost of access road from hi-way ** includes all costs of construction such as materials and labor.

4.5.2 Covered Area Requirement The proposed project layout is to have a six-storey main building of 2,697 m2. Twostorey on the commencement of the businesss operation which houses a restaurant, a bar, a souvenir shop, a function hall and 20 hotel rooms and an additional two floors with 40 hotel

rooms under each planned expansion programs. Two gazebos and a spa will also be constructed exclusive of the main building. The estimated cost details are as under: 4.5.2-1 Pre-operating Investment Details
Description Function Hall, Grand Lobby, Restaurant, Bar, Swimming Pool and Souvenir Shop (First Floor) Porche Arcade and Drop Off Area (First Floor) 20 Hotel Rooms (Second Floor) 2 Gazebos Spa m required 1,876 821 1,420 290 134
2

Construction Rate/ m * 1,750 1,300 2,000 850 500

Total Cost 3,283,000 1,067,300 2,840,000 246,500 67,000

Total Building/Covered Area *includes the cost of materials used and direct labor

Php 7,503,800

4.5.2-2 Expansion Program Details


Description First Expansion 40 Hotel Rooms (Third and Fourth Floor) Second Expansion 40 Hotel Rooms (Fifth and Sixth Floor) m required 2,840 3,054
2

Construction Rate/ m * 2,000 2,200

Total Cost 5,680,000 6,718,800

Total Building/Covered Area *includes the cost of materials used and direct labor

Php 12,398,800

4.5.2-3 Overall Operation Details


Description Function Hall, Grand Lobby, Restaurant, Bar, Swimming Pool and Souvenir Shop (First Floor) Porche Arcade and Drop Off Area (First Floor) 20 Hotel Rooms (Second Floor) 2 Gazebos Spa First Expansion 40 Hotel Rooms (Third and Fourth Floor) Second Expansion 40 Hotel Rooms (Fifth and Sixth Floor) m required 1,876 821 1,420 290 134 2,840 3,054
2

Construction Rate/ m * 1,750 1,300 2,000 850 500 2,000 2,200

Total Cost 3,283,000 1,067,300 2,840,000 246,500 67,000 5,680,000 6,718,800

Total Building/Covered Area *includes the cost of materials used and direct labor

Php 19,902,600

4.5.3 Architectural Requirement Mediterranean revival architecture is used in the exterior design of the building with symmetrical primary faades, stuccoed wall, wrought iron balconies and articulated door surrounds. Keystones were also incorporated in the design with simple ornamentation. The paradoxical design makes Les Chateaux Mountain Resort and Adventures unique from other hotel and resorts in the province, thus having a sizeable advantage.

4.5.4 Layout Requirement The interior of the Hotel Proper at its first floor has been arranged according to its accessibility for the visitors and the most in-need sections used by them. Inside the Hotel-first floor, the drop-off area was settled for the people to drop in and by accessing the interior lobby of the hotel. The interior Lobby, which comprises the Porch Arcade and the front Office Section, were fastened with highly-standardized architectural facilities for the added embellishment of the hotel. Function hall was placed at the right wing of the Hotel. The layout of the hall sets conduciveness for the people who intend to rent the place. It is also the most spacious area for total capacity of most number of people. A bar is also set up at the left wing of the hotel, adjacent to it, the Souvenir Shop, where the walls are covered with glistening glass and tiles which complements to the design type of the building. The restaurant is also found at the leftback wing of the building. It is intentionally adorn with aesthetically design decorations reflecting the ambiance of a Mediterranean design, as well as incorporated also with a touch of classique picture of European atmosphere. The exterior of the Hotel Proper was composed with Spa, Picnic Ground, Gazebo, adult and kiddie pools, spa and sauna booth, Sauna Bath and Pools, and the Parking Area. The locations of the each site were set up according to its ease of access, convenience to the customers and ease of usage. In detail of the components, the location for every site developed area follows also the desired planned set out by the experts. The Sauna bath is found closest to the Adult and Kiddie Pools, where the camping area can also be viewed near to the pools. Gazebos are located nearby the borders of the area, found at the adjoining pathways towards the Sauna Bath and Spa sections, made up in lined with the proposed design fused with the architectural structure of archetypical Greco-Roman inspired building, to put different feature in the place. The Sauna and Spa sections are also furnished with walls clad with beige basalt tiles that are dramatically lit from below to accentuate patterns into the surfaces and addendum also to the European ambiance where it can serve as a place of relaxation. Added to the most cost benefit plan, the area is also skylight on its ceiling which will let through natural

soft light during the day and where soft breeze comes into the place through the wide windows set placed on its walls. The upper floors of the hotel are where the rooms are located. In each floor, there are 5 single bed suite, 9 double bed suite, 4 family suites and 2 presidential suites. The interior of each suite are decorated to fit the Mediterranean theme of the hotel. Accentuated with wooden fixtures, flourished with whitewashed floors and patterned tiles. A touch of modernity is also incorporated in each room. Comfort and soothe are the main point in each room.

4.6 HUMAN RESOURCE REQUIREMENT 4.6.1 Pre-operating Investment The manpower for operating the hotel and resort is as follows: Table 4.6.1-1 Employee Salary Details
Salary Grade Employee Accountant, F&B dept. and kitchen Senior Supervisor, Production Department Supervisor Number of Employees Individual Salary Monthly Salary Annual Salary

Php 22,500.00

Php 67,500.00

Php 810,000.00

Front Office Supervisor, Executive Chef, F&B supervisor, HK Supervisor

Php 15,000.00

Php 60,000.00

Php 720,000.00

Chief cashier, Security and Ranger Leader

Php 12,500.00

Php 50,000.00

Php 600,000.00

Cost controller, Sous chef, Chef de rang ,senior HK

Php 10,000.00

Php 40,000.00

Php

480,000.00

Senior Laundry(1), Senior waitress(1), commis(2)

Php 7,500.00

Php 30,000.00

Php 360,000.00

Cashier(4), receptionist(4), waitress(7), room attendant(6) ,bartender(2), ranger(2), security guard(3), staff cook(2), laundry assistant(2), massieure(3)

35

Php 6,000.00

Php 210,000.00

Php 2,520,000.00

Gardener (1), adventure operators (4)

Php 4,500.00

Php 22,500.00

Php 270,000.00

TOTAL

PhP 5,760,000.00

4.6.2 Expansion Programs On the undertaking of the hotels proposed two expansion programs, additional manpower is required. Details are as follows: Table 4.6.2-1 Expansion Program Details
Salary Grade Employee Accountant, F&B dept. and kitchen Senior Supervisor, Production Department Supervisor Front Office Supervisor, Executive Chef, F&B supervisor, HK Supervisor Chief cashier, Security and Ranger Leader Cost controller, Sous chef, Chef de rang ,senior HK Senior Laundry(1), Senior waitress(1), commis(2) Cashier(4), receptionist(6), waitress(9), room attendant(15) ,bartender(2), ranger(3), security guard(3), staff cook(4), laundry assistant(5), massieure(3) Gardener (1), adventure operators (6) Number of Employees Individual Salary Monthly Salary Annual Salary

Php

22,500.00

Php 112,500.00

Php

1,350,000.00

Php

15,000.00

Php

60,000.00

Php

720,000.00

Php

12,500.00

Php 50,000.00

Php

600,000.00

Php

10,000.00

Php

60,000.00

Php

720,000.00

Php

7,500.00

Php

30,000.00

Php

360,000.00

54

Php

6,000.00

Php 324,000.00

Php

3,888,000.00

Php

4,500.00

Php

31,500.00

Php

378,000.00

TOTAL

Php 8,016,000.00

4.7 OTHER COST REQUIREMENT


4.7.1-1 Cost Item Description Details
Cost Item Description Advertising and Promotion Direct Labor on Cottages Miscellaneous License fees Research and Employee Training Total Total Cost PhP 65,000.00 PhP 42,000.00 PhP 32,500.00 PhP 100,000.00 PhP 500,000.00 PhP 739,500.00

4.8 SANITATION AND WASTE DISPOSAL REQUIREMENT The waste from the hotel and resort will compose of biodegradable materials from restaurant kitchen and business waste such as paper, packaging and general dry non-hazardous waste. The business is responsible for storing and containing these wastes to ensure that it does not cause nuisance to anyone or anything. A waste management program is to be incorporated within the firms policy to guarantee the protection of public health and environment in accordance with REPUBLIC ACT NO. 9003 (ECOLOGICAL SOLID WASTE MANAGEMENT PROGRAM). Furthermore, pre-treatment of the waste, especially the hazardous waste generated during the businesss operation is to done in order to reduce its environmental impact. Utilization of environmentally-sound methods that maximize the utilization of valuable resources and encourage resources conservation and recovery and waste minimization measures, including composing, recycling, re-use, recovery, green charcoal process, and others, before collection, treatment and disposal in appropriate and environmentally-sound solid waste management facilities in accordance with ecologically sustainable development principles are to be established within the businesss operating environment.

5. MANAGEMENT ASPECT
The resorts and adventures will be a corporation which shall be registered under all the incorporators and bearing all the stockholders as its owners and shall be called with a business name Les Chateaux Mountain Resort and Adventures. All the incorporat ors shall become the corporators of the resorts and adventures business. Furthermore, all of the corporators mean that they are the stockholders of the said business. Also, they will also become members of the Board of Directors who has the vested rights to manage, supervise, and govern the business. Along with the management structure of the business, the incorporators shall also contribute their land, labor and capital to get into the business industry. The business shall employ personnel. It is the intention of the corporation is to provide employment to those unemployed individuals in the region and make them functional and operative to the society that is contributory to the objective of social empowerment. Work responsibility shall be assigned to each employee according to their capabilities. The following are the personnel need of the business. 5.1 MEMBERS OF THE AUDIT AND RISK COMMITTEE Those individuals involved in the Audit and risk Committee are responsible for the matters which involves risk management, internal control, audit of the financial statements, compliance requirements, internal audit, external audit and other relevant functions including review of an entitys governance arrangement; performance framework; relevant parliamentary comm ittee reports and recommendations; and portfolio responsibilities. The following qualifications must be met for employment in this position: o Must be graduate of Bachelor of Science in Accountancy o Must have be a Certified Public Accountant o Must have 5 or more years of experience o Must be loyal, dedicated and willing to commit to the work

5.2 MEMBERS OF THE RENUMERATION COMMITTEE The main role and function of the Remuneration Committee is to assist the Board in developing and administering a fair and transparent procedure for setting policy on the overall human resources strategy of the Group and the remuneration of Directors and senior management of the Group, and for determining their remuneration packages, on the basis of their merit, qualifications, and competence, and having regard to the Company's operating results, individual performance, and comparable market statistics. o Have a Management degree o Knowledgeable and willing to commit o Reliable, honest, determined, loyal, gratifying personality, hardworking and disciplined 5.3 EXECUTIVE COMMITTEE The Committee has the following delegated responsibilities: o To consider and recommend for approval by the Council the Associations medium to long-term strategy, with particular reference to the integrated planning of the human, physical and financial resources required to achieve the proposed strategic objectives. o To ensure that the consideration of matters and decisions relating to strategy, performance and resources are consistent with the Associations wish to promote equality and eliminate discrimination. o To keep a watchful eye, and be prepared to advise, on the implementation of the medium to long-term strategy approved by the Council. o To approve and recommend to the Council the Associations annual revenue and capital budgets, in order to achieve the objectives of the approved strategy. o To ensure the implementation of the approved budgets, including the monitoring of performance against budgets. o To consider, approve and keep under review the method by which resources are allocated within the Association and to receive regular reports from the Secretary General on these matters.

o To receive the annual accounts for the Association and recommend their approval to the Council. o To keep under review the performance of the Association and to oversee the implementation of mechanisms required to measure performance. o To be a point of reference and advice about the overall day-to-day business of the Association whilst maintaining the appropriate balance between implementation of policy and the responsibilities of executive management. o To reflect in its decisions the risk strategy and risk management processes approved by the Audit and Risk Committee. o To have regard in its decisions to the responsibilities of the Council as trustees. o To consider and determine such other matters as may be delegated or referred to it by the Council. o To report to each meeting of the Council on the work it has undertaken on the Councils behalf. o For the efficient running of the affairs of the Association, Council should delegate, until its next meeting or further resolution by the Council, all of its powers to the Executive Committee except those of: Electing the Associations office bearers Appointing members of the Executive Committee (other than filling of casual vacancies) Amending the Charter and Statutes and making and amending Bye -Laws The members of the executive committee must meet the following qualifications for the said position: o Have a Management degree o Knowledgeable and willing to commit o Reliable, honest, determined, loyal, gratifying personality, hardworking and discipline.

5.4 MANAGING DIRECTORS The managing Directors are responsible for the overall management of the staff, finances, projects and initiatives to improve process for each departments of the resort. There are responsible for supervising, coordinating and organizing all business activities. They work out on any problem that may arise and finds solutions to solve the said problems. The Managing directors hold auxiliary authority over the operation and usually reports directly to their immediate supervisors or to a corporate officer. They must have the following qualifications:
o o o

Have a Management degree Knowledgeable and willing to commit Reliable, Devoted, loyal, gratifying personality, hardworking, well disciplined, dedicated

5.5 HUMAN RESOURCE MANAGERS A Human Resource Manager is responsible for the overall work performance of the office environment. He is responsible for the flow of information within the company. He provides training and development of the staff within their assigned areas. He develops and implements personnel rules and regulations and establishes collaborative relationships with the various departmental areas of the organization. Also, he ensures that human and material resources are correctly utilized.
o o o o o o o

Have a Management degree Excellent communication and interpersonal skills Knowledge of the labor law Excellent communication skills (written, verbal, listening) Exceptional energy, flexibility and professionalism Excellent communication skills (written, verbal, listening) Exceptional energy, flexibility and professionalism

5.6 FRONT OFFICE DEPARTMENT 5.6.1 FRONT OFFICE SUPERVISOR The Front Office Supervisor are the ones to take hold of the supervision of the activities, movements, and operations in the Front Office Department. They should be aware of the workflows of its department personnel. In detail, The Front Office Supervisor s function is to maintain the smooth operations of the Front Office and assist in leading the Front Office team in providing exceptional guest service while possessing a positive and productive approach to the work day, and always setting the example for the team to follow. The supervisor will assist the Front Office manager to guide, direct, organize and develop the team; appraise performance, reward team members and provide corrective action when necessary; assist in conducting effective meetings; assist with scheduling and payroll. The supervisor will act as the guest advocate anticipating needs, problem solving; assist the Front Desk Agents as required with check-ins, check-outs, switchboard, reservations and provide relief on the desk as needed; provides professional service to guests and fellow associates. There are following standards that it must be met for the position. These are as follows
o o o

Hospitality Management diploma Minimum two years experience as a Guest Service Agent Minimum one year experience of Front Office Supervisory/Management experience preferred

o o o o

Fluent in English, both verbal and written Excellent communication skills (written, verbal, listening) Exceptional energy, flexibility and professionalism Demonstrated ability to modify, and understand financial information, data and basic arithmetic functions

o o

Ability to handle cash accurately (Bondable) Possess coaching skills and is able to influence team members towards the companys goals

Ability to handle problems in the workplace, including anticipating, preventing, identifying and solving problems as necessary

Computer skills - A demonstrated high level of understanding of current forms of technology and its applications

o o o

Hospitality Management diploma Minimum two-year experience as a Guest Service Agent Minimum one year experience of Front Office Supervisory/Management experience preferred

o o o o

Fluent in English, both verbal and written Excellent communication skills (written, verbal, listening) Exceptional energy, flexibility and professionalism Demonstrated ability to modify, and understand financial information, data and basic arithmetic functions

o o

Ability to handle cash accurately (Bondable) Possess coaching skills and is able to influence team members towards the companys goals

Ability to handle problems in the workplace, including anticipating, preventing, identifying and solving problems as necessary

Computer skills - A demonstrated high level of understanding of current forms of technology and its applications

Exceptional customer service skills. 5.6.2 RECEPTIONIST The Receptionist are the once who Provide office support services in order to ensure

efficiency and effectiveness within the Office, maintain the general filing system and file all correspondence, perform clerical duties in order to maintain Hamlet administration, performs receptionist functions, support the Executive Director and other staff, perform other related duties as required. In other words, a receptionist is a person who takes an office or administrative support position in a company or organization. Some of the roles of

a receptionist are ensuring that all the callers and customers are taken care of and a good business image is portrayed to the public. The receptionist should also be aware of the conduct of staff and customers who frequent the reception area. There are qualifications that must be attained for the position and these are as follows: o Well versed in managing multiple line phone system and handling multiple incoming calls o In-depth knowledge of directing visitors to the right person o Committed to provide exceptional customer service to clients and coworkers o Excellent knowledge of administrative and clerical procedures o Adept at giving accurate and detailed information to visitors and callers o Able to handle difficult clients tactfully o Exceptional knowledge of computers and relevant software applications o Demonstrated capability of updating appointment calendars, schedules and maintaining conference rooms o Proven record of performing clerical duties such as scanning, photocopying and collating o Thorough understanding of monitoring visitors access and issuing passes o Extremely capable of keeping reception area clean and organized o Expert in ordering, receiving and maintaining office supplies

5.7 FINANCE DEPARTMENT 5.7.1 ACCOUNTANT An accountant prepares and directs the preparation of audits, financial statements and varied fiscal reports. He reviews and recommends modifications to accounting systems and procedures. He posts data to various ledgers, registers, journals and logs following established accounting techniques and procedures. o Have an Accounting degree o Knowledgeable and willing to commit o Excellent Computer skills

5.7.2 CASHIER A Cashier maintains the orderliness of the counter. He is responsible to accepts payments of the services promptly, gives the customers the right services by their good conduct and personality through being polite. Moreover, there are also more important responsibilities of cashiers. These are as follows: o The first duty of cashier is to greet the customers entering into organization o Handling all the cash transaction of an organization o Receive payment by cash, cheques, credit card etc o Checking daily cash accounts o Guiding and solving queries of customer o Providing training and assistance to new joined cashier o Maintaining monthly, weekly and daily report of transactions There are set standards for the employment for the position of a Cashier and these are as follows: o Graduate of any business course and has a background in accounting, and has the ability to handle the money. o Honest and truthful 5.7.3 COST CONTROLLER A cost controller monitors the financial progress of a project, computes operating fixed and variable costs and compares such costs to budgets. Comparing budget amounts to actual expenses is an accounting function that helps senior management adjust project costs while work is still in progress. This procedure is also called variance analysis. A cost controller typically reports periodic financial statements to a company's finance chief and ensures that accounting procedures and systems are adequate and functional.

A cost controller must or may holds a four-year college in accounting, business or tax. A controller also may hold a master's degree in a business field. Postgraduate cost accounting (also called managerial accounting) degrees are common among cost controllers. A cost controller also may hold a certified public accountant (CPA), a certified management accountant (CMA) or a certified financial manager (CFM) designation. A state accounting board issues a CPA license; the Institute of Management Accountants (IMA) administers the CMA and CFM designations. 5.8 HOUSKEEPING DEPARTMENT 5.8.1 HOUSEKEEPING SUPERVISOR The Housekeeping Supervisor is responsible for the direction of the Housekeeping Staff in maintaining sanitation of the facility for the health, comfort and safety of Residents, staff and visitors. These services are consistent with the Home's standards and philosophy and are in compliance with all regulations, codes, policies and procedures that govern the facility. There are following qualifications for the Housekeeping Supervisor position. o No licensure/certification requirements. o High school education or equivalent. o Speak and understand spoken and written English. o Thorough knowledge of institutional cleaning, procedures. o Two years of Supervisory experience in the Housekeeping profession, preferably in the health care setting. o Must have a basic understanding of the special needs and problems affecting the elderly. o Possess the ability to perform the *essential job functions with or without reasonable accommodations.

5.8.2 SENIOR HOUSEKEEPING SUPERVISOR The Senior Housekeeping Supervisor will be the ones to assist the Housekeeping Manager in leading the housekeeping team, help the staff to provide 3 Diamond Service to all

guests, ensure that all guest rooms and guest areas are clean according to Preferred Standards, and supervise the daily tasks of the housekeepers / house person, responsible for supervising the turndown attendants, conducting monthly inventories, and assisting the Housekeeping Manager with additional projects for the betterment of the property.

There following qualifications of this job is set below:

o Must ensure that all details of the guest rooms are held according to our Preferred Standards, including but not limited to linens, towels, carpet, tile, walls, glass and appliances, and furnishings. o Two years of prior experience in housekeeping is preferred. o Must be able to work in a high paced environment without compromising attention to detail. o Ability to lift and carry 50 pounds for 100 yards. o Ability to make quick decisions and posses good judgment. o Must be able to walk / stand for extended period. o Must be able to assist guests with any challenges to create a positive and memorable experience. o Good listening skills required. o Good interpersonal skills required. o Ability to work well with a team and individually without constant supervision. o Ability to multi-task in a very high paced environment. o Ability to remain calm and professional at all times. o Impeccable attention to detail. o Excellent organizational skills. o Exceptional Management time skills. o Must be knowledgeable of all in-house events and resort activities. o Report all safety hazards and suspicious activities to Manager.

o Know and understand all safety procedures and expectations as well as know their role in an emergency event. o Solid understanding of the different operations of the department as well as interdepartmental communication with Engineering, Food and Beverage, and the Front Desk.

5.8.3 SENIOR LAUNDRY ATTENDANT The Senior Laundry Attendant is responsible for the assisting the Laundry Attendants for the work functions, help them for the smooth flow of the operations in the laundry activities, ensure that the laundry activities are settled and well-kept, and supervise the daily task of the personnel involved in the department. The following qualifications for this position are as follows: o High School diploma / GED preferred o Able to provide housekeeping and laundry services in a resident centered environment, which meets and/or exceeds Sunrise's quality standards o Ability to handle multiple priorities o Possess written and verbal skills for effective communication o Competent in organizational, time management skills o Demonstrates good judgment, problem solving and decision making skills o Ability to work semi-independently without direct supervision by following all community procedures and guidelines and having the ability to follow through on assigned tasks, and demonstrates initiative o 5 year experience in Housekeeping 5.8.4 LAUNDRY ATTENDANT The Laundry Attendant is responsible for performing laundry functions in order to create a safe, secure and inviting environment for residents, families and team members while meeting and exceeding Sunrise quality service standards. Such responsibilities include the Collecting, cleaning and redistributing the community laundry and resident clothing, properly sorting,

washing and drying linens and resident clothing following the approved laundry procedures, transporting supplies to include clean and soiled linen to the appropriate storage and collection areas, folding, counting and stacking linens following approved laundry procedures, routinely inspecting linens for wear and tear, identifying worn and torn linens and following the community's Standard Operating Procedure for damaged linens, maintaining the commercial and residential laundry rooms in a clean, orderly and sanitary condition The following qualifications are set below for the position aforementioned. o High School diploma / GED preferred o Able to provide housekeeping and laundry services in a resident centered environment, which meets and/or exceeds Sunrise's quality standards o Ability to handle multiple priorities o Possess written and verbal skills for effective communication o Competent in organizational, time management skills o Demonstrates good judgment, problem solving and decision making skills o Ability to work semi-independently without direct supervision by following all community procedures and guidelines and having the ability to follow through on assigned tasks, and demonstrates initiative

5.9 FOOD AND BEVERAGES DEPARTMENT 5.9.1 SENIOR SUPERVISOR The Senior Supervisor of the Food and Beverage Department has the responsibility to ensure service delivery at every point of sale in the Food and Beverage Department. He or she therefore supervises and co-ordinates the Food and Beverage Department. Also, they are the ones to ensure that the customer promise is delivered and that customers are satisfied within the framework of financial targets set, to ensure that guests receive high quality service, to

ensure that the applicable regulations are complied with, to be responsible for his or her own results, to optimize the supply chain and the use made of raw materials. There are also qualifications for the Senior Supervisor position and these are as follows: o Team management, leadership & team player o A liking for organizational work o Effective management: delivering profit center profitability o Sales ability o Adaptability: coping with the diversity of customers and their needs o Thoroughness o Sensitivity to customers: good relationship skills o Spirit of initiative o Financial awareness o Qualifications o A-levels (professional) in service-related subjects o Significant food and beverage experience (5 years) o Experience of working in positions of high responsibility in the hotel or food and beverage sectors and managing teams of at least 20 staff 5.9.2 SUPERVISOR The Senior Supervisor of the Food and Beverages Department is responsible to implement the consistent delivery of superior customer service through the Customer Service Program, to ensure that the department creates a professional impression to customers and team members, to participate with action on Customer Service Reports relevant to your department to achieve positive and consistent results, to act on customer feedback relevant to your areas of responsibility, this to include customer complaints and compliments, to be aware of budgeted and actual departmental targets. This to include sales, covers, stocks levels and departmental profits, to assist with the control and monitor payroll costs by ensuring rotes are compiled in line with forecasted and actual business levels, using company productivity ratios

and payroll management, to be aware of and assist with the control of departmental operating costs in line with forecasted business levels, to maximize opportunities for departmental sales and profit and other related targets. These are the qualification for the position: o Minimum 2 years previous experience as a food & beverage supervisor o Safe Food Handler Certified o Smart Service Certified o Able to work independently o Ability to work under pressure, prioritize tasks, and meet deadlines o Excellent organizational skills o Must possess effective oral and written communication skills o Must be able to work flexible hours including evenings, weekends and holidays o Intermediate computer skills o Team player 5.9.3 SENIOR WAITRESS The Senior Waitress is responsible to organize the services offered to diners and ensure the quality of those services. Moreover, they are also expected to welcome and seat diners, advising each on their choice of food and wine and taking their order, to organize and manage their team: organizing their work and training new staff members recruited, to organize the layout of the dining room to create a warm and welcoming atmosphere, to co-ordinate with the kitchen, to ensure that his or her team offers the highest level of service in the welcome it extends to its customers and the way its serves their meals, to ensure that customers are satisfied with the service they receive, to promote customer loyalty through the quality of service provided, to ensure health and safety rules are complied with, to manage stocks, to ensure the continuity of the equipment supplied for his or her use, o Sales ability

o The ability to listen: detecting and anticipating needs o Hospitality o Attention to detail o In depth knowledge of wine o Teaching skills: staff training o Thoroughness: multi-skilled o Team Leadership o Organization o Good relationship skills: being responsible for welcoming diners o Good physical and mental resilience o Availability o City & Guilds to 2 years further education to HND level or similar standard in hotel/food and beverage studies o Significant experience in the food and beverage industry, especially in dining room service (415*) o Excellent knowledge of food and wine o Must be fluent in the English and ideally have a good working knowledge of French o Good general level of education 5.9.4 WAITERS/WAITRESSES To undertake the following tasks: o Arranging the dining room o Welcoming and serving Restaurant guest o Tidying the dining room after meal service The Waiter forms the continuous link between the kitchen and the dining room. Furthermore, they will be responsible to ensure the guests receive high quality services and service provision and to ensure that health and safety and procedures are respected. And the following qualifications for this position are:

o Hygiene o Storage o Politeness o Team working o Sales ability o The ability to listen: understanding how to detect customer needs o Attention to detail o Sensitivity to customers: good relationship skills o Physical and mental resilience o Thoroughness o Organization: multi-skilled o Adaptability/reactivity

5.10 KITCHEN DEPARTMENT 5.10.1 EXECUTIVE CHEF The executive chef will train and manage kitchen personnel and supervise/coordinate all related culinary activities; estimate food consumption and requisition or purchase food; select and develop recipes; standardize production recipes to ensure consistent quality; establish presentation technique and quality standards; plan and price menus; ensure proper equipment operation/maintenance; and ensure proper safety and sanitation in kitchen. The executive chef may cook selected items or for select occasions. The executive chef may oversee special catering events and may also offer culinary instruction and/or demonstrate culinary techniques. The executive chef directly supervises kitchen personnel with responsibility for hiring, discipline, performance reviews and initiating pay increases. Typically reports to a food service director. The following are the qualifications for the Executive chef Position. o Minimum Work Experience: Three years as a Chef de Cuisine, Executive Sous Chef or chef in charge of food production in a foodservice operation. Must have

supervised at least three fulltime people in the preparation of food. Experience must be within the past 10 years. o should have completed a 4-year degree program in culinary arts 5.10.2 SOUS CHEF Sous Chefs are the ones responsible in running the kitchen when the head chef is away, ensuring your brigade has high culinary standards, managing food purchasing and storage, maintaining a safe and hygienic kitchen environment, helping create new recipes and write menus The following are the qualifications for the position: o City & Guilds diplomas in professional cookery o BTEC HND in professional cookery o A foundation degree in culinary arts o Health and safety and food hygiene certificates 5.10.3 CHEF DE RANG To organize and co-ordinate the following tasks together with his or her team: o Arranging the tables o Welcoming and serving the guests o Clears the tables There are also key responsibilities of Chef de Rang which includes the supervision the quality of the services offered to customers, the training and motivating the dining room assistants and apprentices for which he or she is responsible.to look after customer billing and tills. And the following qualifications for this position are: o The ability to ensure efficient, high quality service with apparent ease and assurance o Attention to detail

o Team working o Sales ability o Excellent communicator o IT knowledge i.e. Point of Sale o Good relationship skills o Discretion o Team leadership o Physical and mental resilience 5.10.4 COMMIS CHEF Commis chef is a junior or apprentice chef, and is assigned to different sections of the kitchen for a specific duration. The commis chef works under specialty cooks and learns about food preparation and plating. The experience is invaluable, as it helps them to learn and handle the pace, pressure, and demands of a kitchen. The following are the qualifications for this position: o City and Guilds/ ASET: Level 2 Diploma in Professional Cookery. o BTEC: HND in Professional Cookery. o Foundation Degree in Culinary Arts Management o Working quickly and efficiently. Time is of the essence in a busy kitchen; there is never enough to waste. o Attention to detail. Food is a delicate matter; if you make a mistake the dish may have to be discarded. o Ability to work under pressure. When service fills up and the pressure is on, it is crucial that everyone performs to their best. o Ability to learn on your feet. You must absorb your lessons and put them into practice right away. The more quickly you can do this the faster you will progress.

5.10.5 STAFF COOK Being a cook is a responsible position as a cook has to maintain health standards and has to ensure that safety conditions in the food cooking areas are perfect. The utensils and vegetables have to be properly washed so that food borne diseases are avoided. Proper cooking methods are also important for ensuring that proteins and vitamins are not lost due to over cooking. Cooks have to organize staff schedule, manage various orders simultaneously, multitask, plan menu and ensure that cooking activities are carried out effectively. Cooks are also responsible for promoting positive work environment and coordinate staff activities. o Working quickly and efficiently. Time is of the essence in a busy kitchen; there is never enough to waste. o Attention to detail. Food is a delicate matter; if you make a mistake the dish may have to be discarded. o Ability to work under pressure. When service fills up and the pressure is on, it is crucial that everyone performs to their best. o Ability to learn on your feet. You must absorb your lessons and put them into practice right away. The more quickly you can do this the faster you will progress.

5.11 ENGINEERING DEPARTMENT 5.11.1 MAINTENANCE In charge of building maintenance operation, custodial care, room setups, fire and safety programs, and equipment inventory control. In small unions this position may be combined with that of business manager or assistant director for business or operations. Also, he must have the ability to supervise a variety of personnel actions and direct a work force to ensure the facility is maintained in a clean and orderly manner, appreciation of special needs of

union users, flexibility to adjust to changing schedules, some knowledge of techniques and crafts involved in preventive maintenance, housekeeping, and construction, open to new ideas and adaptable to changing technology. The following job qualifications must be met for the position: o At least three years of successful supervisory experience, preferably in a construction or facility maintenance position. o Bachelors degree in engineering or business management is desirable although significant experience and special training may be acceptable in lieu of a degree. o Communication, Facilities Management, Human Resource Development

5.12 PRODUCTION DEPARTMENT 5.12.1 BAR & SPA 5.12.1.1 CASHIER A Cashier maintains the orderliness of the counter. He is responsible to accepts payments of the services promptly, gives the customers the right services by their good conduct and personality through being polite. Moreover, there are also more important responsibilities of cashiers. These are as follows: o The first duty of cashier is to greet the customers entering into organization o Handling all the cash transaction of an organization o Receive payment by cash, cheques, credit card etc o Checking daily cash accounts o Guiding and solving queries of customer o Providing training and assistance to new joined cashier o Maintaining monthly, weekly and daily report of transactions

There are set standards for the employment for the position of a Cashier and these are as follows: o Graduate of any business course and has a background in accounting, and has the ability to handle the money. o Honest and truthful 5.12.1.2 WAITERS/WAITRESSES To undertake the following tasks: o Arranging the dining room o Welcoming and serving Restaurant guest o Tidying the dining room after meal service The Waiter forms the continuous link between the kitchen and the dining room. Furthermore, they will be responsible to ensure the guests receive high quality services and service provision and to ensure that health and safety and procedures are respected. And the following qualifications for this position are: o Hygiene o Storage o Politeness o Team working o Sales ability o The ability to listen: understanding how to detect customer needs o Attention to detail o Sensitivity to customers: good relationship skills o Physical and mental resilience o Thoroughness o Organization: multi-skilled o Adaptability/reactivity

5.12.1.3 MASSAGE THERAPIST Spa Massage therapists evaluate clients by conducting various motion and muscle testing and suggest treatment plans. They ought to have a comprehensive knowledge of various massage modalities, posses a common understanding of body treatments and be eager to train in spas specific massage and body healing offerings. They ought to possess outstanding communication skills and be able to learn the product and service awareness essential to efficiently give wellness solutions to meet the needs of guests. They have to hold and maintain a current license. The following are the qualifications for the said position: o Team player o Have an enthusiasm and possess superb customer service skills o Take pleasure in working with people and have a welcoming and outgoing personality o Must hold and maintain a current state of employment license o Outstanding communication and listening skills, in addition to basic computer knowledge 5.12.1.4 BARTENDER The Bartender is tasked to:Welcome and advise customers, Prepare and serve drinks and cocktails, take responsibility for the organization of the bar, charge customers for their drinks, accept the corresponding payments and manage bar stocks and supplies. Along with the foregoing responsibilities are, to ensure service and product quality, to ensure the continuity of the equipment supplied for his or her use, to look after customer billing and stock of cash, to ensure that the bar is clean properly equipped, to look after bar customers, The following are the qualifications for this position: o Knowledge of alcoholic drinks and cocktail recipes o Complete knowledge of health and safety rules

o Stock management abilities o Sales ability o Dexterity and speed o Good relationship skills o Listening skills o Physical and mental resilience o Teaching skills o Reactivity: handling every kind of situation o Thoroughness o City & Guilds, NVQ2 (Vocational Training Certificate) in restaurant, hotel or food and beverage studies o Significant experience will be require for the post of Head Barman o Good general level of education 5.12.2 FUNCTION HALL 5.12.2.1 RECEPTIONIST The Receptionist are the once who Provide office support services in order to ensure efficiency and effectiveness within the Office, maintain the general filing system and file all correspondence, perform clerical duties in order to maintain Hamlet administration, performs receptionist functions, support the Executive Director and other staff, perform other related duties as required. In other words, a receptionist is a person who takes an office or administrative support position in a company or organization. Some of the roles of a receptionist are ensuring that all the callers and customers are taken care of and a good business image is portrayed to the public. The receptionist should also be aware of the conduct of staff and customers who frequent the reception area. There are qualifications that must be attained for the position and these are as follows:

o Well versed in managing multiple line phone system and handling multiple incoming calls o In-depth knowledge of directing visitors to the right person o Committed to provide exceptional customer service to clients and coworkers o Excellent knowledge of administrative and clerical procedures o Adept at giving accurate and detailed information to visitors and callers o Able to handle difficult clients tactfully o Exceptional knowledge of computers and relevant software applications o Demonstrated capability of updating appointment calendars, schedules and maintaining conference rooms o Proven record of performing clerical duties such as scanning, photocopying and collating o Thorough understanding of monitoring visitors access and issuing passes o Extremely capable of keeping reception area clean and organized o Expert in ordering, receiving and maintaining office supplies 5.12.2.2 SOUND SYSTEM OPERATOR A Sound System Operator must possess a bachelors degree in sound design or a related field of study, has a substantial knowledge of sound techniques and technology, also understands various occupational-related electronics and computer knowledge and has a work experience as an operator. 5.12.3 ADVENTURES 5.12.3.1 CASHIER A Cashier maintains the orderliness of the counter. He is responsible to accepts payments of the services promptly, gives the customers the right services by their good conduct and personality through being polite. Moreover, there are also more important responsibilities of cashiers. These are as follows:

o The first duty of cashier is to greet the customers entering into organization o Handling all the cash transaction of an organization o Receive payment by cash, cheques, credit card etc o Checking daily cash accounts o Guiding and solving queries of customer o Providing training and assistance to new joined cashier o Maintaining monthly, weekly and daily report of transactions There are set standards for the employment for the position of a Cashier and these are as follows: o Graduate of any business course and has a background in accounting, and has the ability to handle the money. o Honest and truthful 5.12.3.2 RIDE OPERATORS They are the employees who make sure that patrons or riders in every station have safe and fun rides. They are also responsible for keeping workstations and surrounding areas clean and maintained. o At least 18 years and above o Pleasing personality o Friendly and outgoing, and demonstrate the ability to work with people of all ages and different backgrounds.

5.13 GARDENER 5.13.1 SENIOR GARDENER The responsibilities of Senior Gardener may include, but are not limited to, the following: lead and participate in landscaping and irrigation activities such as the techniques and methods of maintaining plants, shrubs, lawns, athletic surfaces and irrigation systems, and other assigned areas; perform the most skilled or complex duties; operate and maintain a variety of hand and power landscaping tools and equipment used in landscaping and irrigations systems; secure worksites from traffic hazards as necessary; monitor work in progress at the work site; provide technical assistance to crews and direct corrections and modification as appropriate; train and instruct new and less experienced employees in proper work methods, tools, equipment, and safety precautions; ensure safety of work sites by utilizing appropriate safety methods, equipment and devices, including traffic control; discuss work to be performed with supervisor; plan, organize and assign work to designated crew; inspect job sites to ensure the proper maintenance of plants, shrubs, lawns, medians and other landscaped areas. The qualifications are: o Minimum 2 years gardening experience, working knowledge of perennials, shrubs. o Very punctual and dependable 5.13.2 GARDENER o Must have knowledge in gardening including taking care of pants and flowers. o Must have wide knowledge in different varieties of flowers and plants. o Must have knowledge in planting and maintaining grass such as Bermuda grass. o Knowledge in applying fertilizers and other necessary chemicals to the plants. o Must have knowledge and ability to do basic landscaping for the plants o Ability to detect and remove pests. o Must have passion in plants.

5.14 SECURITY DEPARTMENT 5.14.1 SECURITY OFFICERS/ GUARDS Maintains safe and secure environment for customers and employees by patrolling and monitoring premises and personnel.

They have the following duties and responsibilities: o Secures premises and personnel by patrolling property; monitoring surveillance equipment; inspecting buildings, equipment, and access points; permitting entry. o Obtains help by sounding alarms. o Prevents losses and damage by reporting irregularities; informing violators of policy and procedures; restraining trespassers. o Controls traffic by directing drivers. o Completes reports by recording observations, information, occurrences, and surveillance activities; interviewing witnesses; obtaining signatures. o Maintains environment by monitoring and setting building and equipment controls. o Maintains organization's stability and reputation by complying with legal requirements. o Ensures operation of equipment by completing preventive maintenance requirements; following manufacturer's instructions; troubleshooting malfunctions; calling for repairs; evaluating new equipment and techniques. o Contributes to team effort by accomplishing related results as needed. Skills/Qualifications: Lifting, Surveillance Skills, Deals with Uncertainty, Judgment, Objectivity, Dependability, Emotional Control, Integrity, Safety Management,

Professionalism, Reporting Skills

5.15 RANGER DEPARTMENT 5.15.1 RANGERS/RESCUERS They are the ones who ensures the safety and protection of the riders, swimmers, and visitors in the resort. They are composed of medical teams and risk rescuer personnel who see the overall welfare of the people, as well as the employees. The qualifications for this position are: o Must have the ability to react promptly in any circumstances o Must be knowledgeable with first-aid treatments and other emergency need expertise o Knows complex rescue procedures and has been enrolled to any Medical school or other related field of study or must have formal classes about rescue procedures.

6. ORGANIZATIONAL STRUCTURE

PARTNERS

Managing Partner

Executive Committee

Associate Partner

General Partners/Managers Human Resource Manager

Front Office Department

Finance Department

Housekeeping Department

Food & Beverage Department

Kitchen Department

Engineering Department

Production Department

Gardener

Security

Ranger

Supervisor

Accountant

Supervisor

Senior Supervisor

Executive Chef

Maintenance

Bars & Spa

Function Hall

Adventures

Senior

Leader

Leader

Receptionist

Chef Cashier

Senior H/K Attendant

Senior Laundry Attendant

Supervisor

Sous Chef

Chef de Rang

Cashier

Receptionist

Cashier

Gardener

Guard

Ranger

Cost Controller

Room Attendant

Laumdry Attendant

Senior Waitress

Commis II

Commis II

Waitress

Sound System Operator

Ride Operators

Waitress

Staff Cook

Therapists

Bartender

7. FINANCIAL ASPECT
7. 1 PROJECTED INCOME STATEMENT
Les Chateaux Mountain Resort and Adventures Projected Statement of Income For the 5 year Operations 1st Year Gross Revenue (See Schedule 1) Less: Direct Costs (See Schedule 2) Total Gross Sales Less: Cost of Sales (See Schedule 3) Total Total Gross Profit Operating Expenses Salaries and Wages (See Schedule 4) Advertising Insurance Utilities (See Schedule 5) Depreciation and Amortization (See Schedule 6) Supplies Repairs and Maintenance Miscellaneous Communication Total Total Operating Income(Loss) Net Income before Interest and Taxes Less: Interest Expense (See Schedule 7) Net Income before Taxes Less: Taxes Net Income (Loss) 12050520 2503122 9547398 1164390 931512 232878 9780276 2nd Year 13801152 2866762 10934390 1280829 1024663 256166 11190556 3rd Year 15570967 3234386 12336581 1408912 1127130 281782 12618364 4th Year 16972184 3525445 13446739 1549803 1239842 309961 13756699 5th Year 18006912 3740378 14266534 1704783 1363827 340957 14607491

5760000 360000 375190 720000 1025278 90000 120000 120000 42000 8612468 1167808 1167808 415747 752061 225618 526443

5760000 360000 375190 820800 1025278 94500 132000 120000 46200 8733968 2456588 2456588 415747 2040841 612252 1428589

5760000 180000 375190 928800 1025278 99225 145200 120000 50820 8684513 3933851 3933851 332598 3601253 1080376 2520877

5760000 180000 375190 1015200 1025278 104186 159720 120000 55902 8795476 4961223 4961223 249448 4711775 1413532 3298242

5760000 180000 375190 1072800 1025278 109396 175692 120000 61492 8879848 5727643 5727643 166299 5561344 1668403 3892941

7.1.1 SCHEDULES TO PROJECTED STATEMENT OF INCOME Schedule 1 Forecast of Revenue Items of Income Income from Hotel Rooms Income from Single Bed Suite Income from Double Bed Suite Income from Family Suite Income from Presidential Suite Total Income from Spa Income from Sauna Income from Swimming Pool Income from Cottages Income from Resorts Adventures Zip Line Rock/Wall Climbing Camping Site Other Income Forecasted Gross Revenues Income from Restaurant Income from Mini Bar Income from Souvenir Shop Forecasted Gross Sales Forecasted Total Income 1st Year 1462500 3685500 2293200 1755000 9196200 326500 190400 51400 936000 99200 36300 14520 1200000 12050520 940500 213000 10890 1164390 13214910 2nd Year 1687500 4252500 2646000 2025000 10611000 359150 209440 56540 1080000 109120 39930 15972 1320000 13801152 1034550 234300 11979 1280829 15081981 3rd Year 1912500 4819500 2998800 2295000 12025800 395065 230384 62194 1224000 120032 43923 17569 1452000 15570967 1138005 257730 13177 1408912 16979879 4th Year 2081250 5244750 3263400 2497500 13086900 434572 253422 68413 1332000 132035 48315 19326 1597200 16972184 1251806 283503 14495 1549803 18521987 5th Year 2193750 5528250 3439800 2632500 13794300 478029 278765 75255 1404000 145239 53147 21259 1756920 18006912 1376986 311853 15944 1704783 19711696

Schedule 2 Direct Costs Revenue Hotels Spa Sauna Swimming Pool Cottages Zip Line Rock/Wall Climbing Camping Sites Function Hall Total Percentages Note: 9196200 326500 190400 51400 936000 99200 36300 14520 1200000 12050520 100% Direct Cost 1379430 195900 19040 5140 93600 59520 21780 8712 720000 2503122 20.77% Gross Profit 7816770 130600 171360 46260 842400 39680 14520 5808 480000 9547398 79.23%

The percentage of direct cost to revenue is consistently assumed in the years of operations. Sample Computation: 2nd Year = (12050520*20.7719003%) = 2,503,122

Schedule 3 Cost of Sales Sales Restaurant Mini Bar Souvenir Shop Total Percentages 940500 213000 10890 1164390 100% Cost of sales 752400 170400 8712 931512 0.8 Gross Profit 188100 42600 2178 232878 0.2

Schedule 4 Salaries and Wages Salary Grade Employee Accountant, F&B dept. and kitchen Senior Supervisor, Production Department Supervisor Number of Employees Individual Salary Monthly Salary Annual Salary

22,500

67,500

810,000

Front Office Supervisor, Executive Chef, F&B supervisor, HouseKeeping Supervisor

15,000

60,000

720,000

Chief cashier, Security and Ranger Leader

12,500

50,000

600,000

Cost controller, Sous chef, Chef de rang , Senior HouseKeeping

10,000

40,000

480,000

Senior Laundry(1), Senior waitress(1), commis(2)

7,500

30,000

360,000

Cashier(4), receptionist(4), waitress(7), room attendant(6) ,bartender(2), ranger(2), security guard(3), staff cook(2), laundry assistant(2), massieure(3)

35

6,000

210,000

2,520,000

Gardener (1), adventure operators (4)

4,500

22,500

270,000 5,760,000

TOTAL

Schedule 5 Utilities Expense 1st Year Total Gross Profit Percentage Increase Note: 9780276 2nd Year 11190556 0.14 3rd Year 12618364 0.29 4th Year 13756699 0.41 5th Year 14607491 0.49

Utilities are assumed at a fixed month of 60,000 for the 1st year and is increased by the percentage increase in gross profit. Sample Computation: 1st Year = (60,000*12) = 720,000 2nd Year = (720,000*1.14) = 820,800 3rd Year = (720,000*1.29) = 928,800

Schedule 6 Depreciation and Amortization Building 1st Year Cost Accumulated Depreciation Building, net 7503800 357690 7146110 2nd Year 7503800 715380 6788420 3rd Year 7503800 1073070 6430730 4th Year 7503800 1430760 6073040 5th Year 7503800 1788450 5715350

Depreciation per year = Furnitures and Fixtures

7503800 350000 20

= 357690

1st Year Cost Accumulated Depreciation Furnitures and Fixtures, net 6738763 336938 6401824 6738762.5 20

2nd Year 6738763 673876 6064886

3rd Year 6738763 1010814 5727948

4th Year 6738763 1347753 5391010

5th Year 6738763 1684691 5054072

Depreciation per year =

= 336938.125

Equipment 1st Year Cost Accumulated Depreciation Equipment, net 1000000 50000 950000 1000000 20 2nd Year 1000000 100000 900000 3rd Year 1000000 150000 850000 4th Year 1000000 200000 800000 5th Year 1000000 250000 750000

Depreciation per year =

= 50000

Schedule of Amortization of Intangibles Pre-Operating Investment 1st Year Cost Amortization Pre-Operating Investment, net 739500 147900 591600 739500 5 2nd Year 591600 147900 443700 3rd Year 443700 147900 295800 4th Year 295800 147900 147900 5th Year 147900 147900 0

Amortization per year =

= 147900

Site Development 1st Year Cost Amortization Site Development, net 2655000 132750 2522250 2655000 20 2nd Year 2522250 132750 2389500 3rd Year 2389500 132750 2256750 4th Year 2256750 132750 2124000 5th Year 2124000 132750 1991250

Amortization per year =

= 132750

Schedule 7 Interest Expense 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 3545559 3545559 2836448 2127336 1418224 709112 0 425467 425467 340374 255280 170187 85093 0 709112 709112 709112 709112 709112 0

Outstanding Loan Payable Interest Expense (12%) Payment

7. 2 PROJECTED STATEMENT OF FINANCIAL POSITION


Les Chateaux Mountain Resort and Adventures Projected Statement of Financial Position For the 5 year Operations 1st Year Assets Current Cash & Cash Equivalents Non-Current Building, net Equipments, net Furniture and Fixtures, net Land Intagible Assets Pre-Investment, net Site Development, net Total Total Assets Liabilities Current Non-Current Loan Payable Equities Partners' Capital Total Liabilities and Capital 1551721 3296476 6133519 9747928 13957035 2nd Year 3rd Year 4th Year 5th Year

7146110 950000 6401824 5000000 591600 2522250 22611784 24163505

6788420 900000 6064886 5000000 443700 2389500 21586506 24882982

6430730 850000 5727948 5000000 295800 2256750 20561228 26694747

6073040 800000 5391010 5000000 147900 2124000 19535950 29283878

5715350 750000 5054072 5000000 0 1991250 18510672 32467707

3545559

2836448

2127336

1418224

709112

20617946 24163505

22046534 24882982

24567411 26694747

27865654 29283878

31758595 32467707

7. 3 PROJECTED CASH FLOW STATEMENT


Les Chateaux Mountain Resort and Adventures Projected Statement of Cash Flows For the 5 year Operations 1st Year Cash Flows from Operations Net Income (Loss) Add: Depreciation and Amortization Net Cash Flows from Operations Cash Flows from Investing Activities Purchase of Land Construction Cost of Building Purchase of furnitures and Fixtures Purchase of Equipment Pre-Operating Investment Site Development Cost Net Cash Flows from Investing Cash Flows Financing Activities Partners' Capital Long-term Loan Payable Net Cash Flows from Financing Net Cash Inflows(Outflows) Beginning Cah Balance Ending Cash Balance 526443 1025278 1551721 2nd Year 1428589 1025278 2453867 3rd Year 2520877 1025278 3546155 4th Year 3298242 1025278 4323520 5th Year 3892941 1025278 4918219

(5000000) (7503800) (6738763) (1000000) (739500) (2655000) (23637063)

20091503 3545559 23637063 1551721 0 1551721

(709112) (709112) 1744755 1551721 3296476

(709112) (709112) 2837043 3296476 6133519

(709112) (709112) 3614409 6133519 9747928

(709112) (709112) 4209107 9747928 13957035

7.4 GENERAL ASSUMPTIONS 7.4.1 REVENUE ASSUMPTIONS For the 1st Year Operation The assumption of income will be base on this schedule: Table 1
Rate of Visit per Quarter b C Expected No. of Expected Customers Times of Visit Customers per Quarter (a*Rate of Times Willing to Visit*Time of Visit) (Base * rate of (a*Rate of project Customers 1x 2x 3x 4x 5x viability) per Quarter) 955 143 36 94 127 63 11 955 400 100 264 354 176 30 955 76 19 50 67 33 6 955 337 84 222 298 148 25 A

d No. of Expected Visits per Quarter 330 923 175 777

Quarter

January March April June July September October - December

Note: (1) The base we use is 1000 person which is a 500% increase from our sample size of 200 respondents. (2) The number of expected visits per quarter are counted base on the number of times a customer is expected to visit the resort not on per head count.

Income from Hotel All projected income will be reported on a quarterly basis. 1. Rooms Rental fee of hotel rooms will be based on the average present prices of hotels and resorts in Ilocos Norte. Rent Income depends on the classes of rooms available Single Bed Suite, Double Bed Suite, Family Suite or Presidential Suite. Income from hotel rooms is determined by getting the assumed total capacity utilization per month for each type of hotel rooms and multiplies it by the corresponding rental fee for each room. The rate of capacity utilization is patterned

depending on the months most customers will visit the resort. (Table 2 and 3 provides basis for the Assumed Capacity Utilization per Quarter) 2. Restaurant The income derived from the restaurant will be based on the assumption that all costs attributable to the daily operations of the restaurant and its direct labor will be considered 100% and mark up on selling price of foods or beverages of the restaurant will be 25%. Sales will be based on the number of customers willing to eat in the restaurant multiplied by the minimum amount of money they are willing to spend in the restaurant based on the survey. 3. Mini Bar Income from the mini bar is derived using the present market cost rate of the province for alcohol and beverages. Sales will be based on the number of customers willing to visit the mini bar multiplied by the minimum amount of money they are willing to spend in the mini bar based on the survey. A mark up on costs of 25% will be assumed. 4. Other Income All other income that accrues to the hotel particularly the use of function hall to hold different venues such as seminars, trainings, programs, parties for all occasions and others will be based in the assumption that 2 events will be held per month for a total of 6 events per quarter multiplied by the rental fee. Such fee will be based on the costs incurred (e.g. handling events). Income from Spa, Sauna and Swimming Pool The income from spa, sauna and swimming pool is computed using as a price basis the average prevailing prices of spa, sauna, and swimming pool in Ilocos Norte. This method serves as the researchers guideline in determining the income from the amenities:

a. The number of customers willing to avail the amenities is computed by multiplying its percentage with the number of customers visiting the resort per quarter. b. Multiply the result in a with the average price computed to determine the income. Income from Cottages Income from cottages will be computed by multiplying the total assumed capacity utilization of the cottages per quarter multiply by the price of cottages. The price used is based on professional judgment. (Table 3 and 4 shows the Capacity utilization of Cottages) Income from Souvenir Shop The income from souvenir shop will be based on the costs attributed to such. Costs will be considered at 100% and a mark up on selling price of 20% will be imposed. Income will be computed by multiplying the number of visitors willing to buy souvenirs with the percentage of visit per quarter, and then multiply the result from the price of souvenir items. The souvenir items offered includes t-shirts, key chains, badges and fans. Income from Resorts Adventures 1. Zip Line Total income is determined by multiplying the number of visitors with the rate of visitors willing to try the zip line multiplied by the computed price. 2. Rock/Wall Climbing Total income is determined by multiplying the number of visitors with the rate of visitors willing to try rock/wall climbing multiplied by the computed price. 3. Camping Sites Camping sites will produce income by imposing rent on the area to be occupied by the campers and also by providing tent if they cant provide for themselves. Total income will be computed by multiplying the number of customers willing to camp at the resort with the computed price for each area plus the rent of tents if any. Tents are assumed to have a capacity of 5 persons. It is to be assumed also that 50% of those who

want to camp have their tent, thus paying only for the space rent, and 50% will rent their tent to the resort. Table 2 Type of Rooms Single Bed Suite Double Bed Suite Family Suite Presidential Suite No. of Rooms 5 9 4 2 Assumed No. of Business Days per Quarter 90 90 90 90 Assumed Total Capacity 450 810 360 180

Table 3 Rate of Capacity utilization Growth in 1st Month Capacity year Utilization January - March 60% 40% April - June 80% 20% July - September 50% 50% October - December 70% 70% Growth Rate per Year: 10%

Max Attainable Capacity 100% 100% 100% 100%

Table 4 No. of Cottages No. of Business days per Quarter Assumed Total Capacity Utilization 8 90 720

For the succeeding years of operation 1. For the incomes on hotel rooms and cottages, it will be assumed that the growth rate of the utilization per year will be 10% until reaching the maximum attainable capacity utilization. 2. For all other sources of income, it will be assumed that revenues will increase by 10% each year.

7.4.2 COST ASSUMPTIONS 1. Direct Costs of Income: a. Hotel Rooms Direct costs attributable to hotel rooms will be maintenance and toiletries. It will be assumed at 15% of the total income from renting the hotel rooms. b. Spa Items included in direct costs for spa will be the direct labor and necessary supplies. It will be assumed that 60% of the total income from spa will be directly attributable to the spa. c. Sauna Direct costs attributable to the sauna will be its maintenance and supplies expense. Assumed percentage of direct cost will be 10% of the income coming from sauna. d. Swimming Pool Direct costs attributable to the swimming pool will be its maintenance expense. Assumed percentage of direct cost will be 10% of the income coming from swimming pool. e. Cottages The only direct cost arising from cottages will be its maintenance expense which is assumed at 10% of its total income. f. Zip Line Costs directly attributable to the zip line are direct labor of facilitators and repairs and maintenance. It will be assumed at 60% of total income coming from the zip line. g. Rock/Wall Climbing Costs directly attributable to the rock/wall climbing are direct labor of facilitators and repairs and maintenance. It will be assumed at 60% of total income coming from rock/wall climbing.

h. Camping site Costs directly attributable to the camping site are direct labor of securities and facilitators and maintenance. It will be assumed at 60% of total income coming from camping activities. i. Function Hall Direct costs of function hall will be its maintenance and direct labor of staff organizing the events. Assumed costs will be 60% of income accruing from the use of function hall. For the succeeding years of operations, the direct costs percentage of gross revenue will be maintained. 2. Cost of Sales a. Restaurant Costs of sales will include raw materials for the foods offered and beverages. It will be assumed that of the total sales 80% forms part of the costs of sales. b. Mini Bar Cost of sales will be the costs of products when acquired from suppliers. Of the price imposed on the product it will be assumed that 80% will be the cost. c. Souvenir Shop Cost of sales of souvenir shops includes the costs of making the souvenirs. It will be assumed that cost is 80% of the total sales of souvenir items. Inventory assumptions of souvenir items will be 20% of the items available for sale will be the ending inventory for each quarter. For the succeeding years of operations, the cost of sales percentage of gross revenue will be maintained.

3. Operating Expenses a. Salaries and Wages Salaries and Wages are base on the quantity of work delegated to each employee. Summary of salaries and wages is seen in the schedule 4 of projected statement of income. b. Advertising Advertising expenses will include the expenses to be incurred in the promotion of resort to the public. It will be assumed at Php 30 000 per month for the first 2 years of operation and Php 15 000 for the succeeding years of operation. c. Insurance The building will be insured by Paramount Life and General Insurance Corporation. The insurance expense will cover 50% of the original cost of the building and will be paid every year for 10 years. d. Utilities Utilities expense consists of water and electricity. Utilities Expense for the first year is assumed at a fixed rate of Php 60 000 per month, 20% of it will consist of water expense and 80% will consist of electricity expense. However for the succeeding years of operation this rate will be increased by the percentage of increase in the total gross profit per year using the total gross profit of 1st year as base to compensate for the increase in utilization of the hotel and its amenities. e. Depreciation and Amortization The pre-operating investment costs will be amortized for 5 years starting in the year of operation. Site development cost will be amortized for 20 years. Depreciation expense for the building, equipment and furniture and fixtures will be computed using the straight line method of depreciation for 20 years. The building will be assumed to have a salvage value of Php 350 000.

f. Supplies The administrative supplies will be assumed at Php 7 500 per month. These will consist of the cleaning materials and office supplies to be used in each department. This will be assumed to increase at 5% per year for the succeeding years of operation. g. Repairs and Maintenance The expenses incurred in the repairs and maintenance of other amenities and facilities will be fixed at Php 10 000 per month for the first year. This will increase at 10% per year for the next years of operation. h. Miscellaneous These will compose of the expenses to be incurred in case of emergencies and contingencies. It will also be assumed at Php 10 000 per month. i. Communication Communication expenses shall cover the telephone bills, internet connection expenses and cable connections. It will be fixed rate of Php 3 500 per month. However since the number of expected customers will be increasing, it will assumed to increase at 10% per year. 4. Interest Expense Interest expense will be at a rate of 12% of the loan payable. See Schedule 7 of Projected Statement of Income. 5. Taxes Tax rate is 30%.

7.5 REVENUE COMPUTATION 7.5.1 INCOME OF HOTEL ROOMS Income from Single Bed Suite 1st year 2nd year 3rd year 4th year 5th year Rent Income (Assumed Total Capacity*Capacity Utilization Rate*1250) 337500 393750 450000 506250 562500 450000 506250 562500 562500 562500 281250 337500 393750 450000 506250 393750 450000 506250 562500 562500 1462500 1687500 1912500 2081250 2193750

Month January - March April June July - September October - December Total
Note:

See Tables 2 and 3 of General assumptions. Sample Computations: 1st year Jan March = (450*.6*1250) = 337500 2nd year Jan March = (450*.7*1250) = 393750 3rd year Jan March = (450*.8*1250) = 450000 4th year Jan March = (450*.9*1250) = 506250 5th year Jan March = (450*1*1250) = 562500 *the same computation will be followed for the income of other hotel rooms

Month January - March April June July - September October - December Total

Income from Double Bed Suite 1st year 2nd year 3rd year 4th year 5th year Rent Income (Assumed Total Capacity*Capacity Utilization Rate*1750) 850500 992250 1134000 1275750 1417500 1134000 1275750 1417500 1417500 1417500 708750 850500 992250 1134000 1275750 992250 1134000 1275750 1417500 1417500 3685500 4252500 4819500 5244750 5528250

Month January - March April June July - September October - December Total

Income from Family Suite 1st year 2nd year 3rd year 4th year 5th year Rent Income (Assumed Total Capacity*Capacity Utilization Rate*2450) 529200 617400 705600 793800 882000 705600 793800 882000 882000 882000 441000 529200 617400 705600 793800 617400 705600 793800 882000 882000 2293200 2646000 2998800 3263400 3439800 Income from Presidential Suite 1st year 2nd year 3rd year 4th year 5th year Rent Income (Assumed Total Capacity*Capacity Utilization Rate*3750) 405000 472500 540000 607500 675000 540000 607500 675000 675000 675000 337500 405000 472500 540000 607500 472500 540000 607500 675000 675000 1755000 2025000 2295000 2497500 2632500

Month January - March April June July - September October - December Total
7.5.2 INCOME FROM SPA

3rd year 4th year 5th year Income Month (No. of Expected Visits per Quarter*Rate of Customers Willing to Pay for Spa*500) January - March 49000 53900 59290 65219 71741 April June 136500 150150 165165 181682 199850 July - September 26000 28600 31460 34606 38067 October - December 115000 126500 139150 153065 168372 Total 326500 359150 395065 434572 478029 Note: Refer to Table 1 of General assumptions. Computations are rounded off since we are talking of no. of customers willing to pay for such amenities. Sample Computations: 1st Year: Jan March = (330*29.58%) = 98*500 = 49000 April June = (923*29.58%) = 273*500 = 136500 2nd Year: Jan March = (49000*1.10) =53900 April June = (136500*1.10) = 150150

Income from Spa 2nd year 1st year

7.5.3 INCOME FROM SAUNA Income from Sauna 1st year 2nd year

3rd year 4th year 5th year Income Month (No. of Expected Visits per Quarter*Rate of Customers Willing to Pay for Sauna*350) January - March 28350 31185 34304 37734 41507 April June 79800 87780 96558 106214 116835 July - September 15050 16555 18211 20032 22035 October - December 67200 73920 81312 89443 98388 Total 190400 209440 230384 253422 278765 Note: Refer to Table 1 of General Assumptions. Computation will be the same with income from spa, only that this time the percentage of customers willing to pay for the amenities will be 24.65%. 7.5.4 INCOME FROM SWIMMING POOL Income from Swimming Pool 1st year 2nd year 3rd year 4th year 5th year Income Month (No. of Expected Visits per Quarter*Rate of Customers Willing to Pay for Swimming Pool*100) January - March 7700 8470 9317 10249 11274 April June 21500 23650 26015 28617 31478 July - September 4100 4510 4961 5457 6003 October - December 18100 19910 21901 24091 26500 Total 51400 56540 62194 68413 75255 Note: Refer to Table 1 of General Assumptions. Computation will be the same with income from spa, only that this time the percentage of customers willing to pay for the amenities will be 23.24%.

7.5.5 INCOME FROM COTTAGES Income from Cottages 1st year 2nd year 3rd year Rent Income 216000 288000 180000 252000 936000 252000 324000 216000 288000 1080000 288000 360000 252000 324000 1224000

4th year

5th year

Month January - March April June July - September October - December Total

(Assumed Total Capacity*Capacity Utilization Rate*500)


324000 360000 288000 360000 1332000 360000 360000 324000 360000 1404000

Note: Refer to Tables 3 and 4 of General Assumptions. Sample Computations: 1st Year Jan March = (720*.6*500) = 216000 April June = (720*.8*500) = 288000 2nd Year Jan March = (720*.7*500) = 252000 April June = (720*.9*500) = 324000 7.5.6 INCOME FROM RESORT ADVENTURES Zip Line 2nd year

3rd year 4th year 5th year Income Month (No. of Expected Visits per Quarter*Rate of Customers Willing to Pay for Zip Line*200) January March 14800 16280 17908 19699 21669 April June 41600 45760 50336 55370 60907 7800 8580 9438 10382 11420 July September 35000 38500 42350 46585 51244 October December 99200 109120 120032 132035 145239 Total Note: Refer to Table 1 of General Assumptions. Computation will be the same with income from Spa and other amenities, only that this time the percentage of customers willing to try Zip Line will be 22.54%.

1st year

3rd year 4th year 5th year Income Month (No. of Expected Visits per Quarter*Rate of Customers Willing to Pay for Rock/Wall Climbing*100) January March 5400 5940 6534 7187 7906 April June 15200 16720 18392 20231 22254 July September 2900 3190 3509 3860 4246 October December 12800 14080 15488 17037 18740 Total 36300 39930 43923 48315 53147 Note: Refer to Table 1 of General Assumptions. Computation will be the same with income from Spa and other amenities, only that this time the percentage of customers willing to try Rock/Wall Climbing will be 16.43%. Camping Site 1st year 2nd year 3rd year 4th year 5th year

Rock/Wall Climbing 1st year 2nd year

Income from Space rent Month from Space rent and Tent Income (Customers (Customers willing to willint to Camp/5*.50*100) Camo/5*.5*200) January - March 720 1440 2160 2376 2614 2875 3162 April - June 2100 4020 6120 6732 7405 8146 8960 July - September 380 760 1140 1254 1379 1517 1669 October - December 1700 3400 5100 5610 6171 6788 7467 Total 14520 15972 17569 19326 21259 Note: Refer to Table 1 of General Assumptions. Customers renting space and both space and tent will be assumed at 50% each and will increase by the assumed rate of 10% each year. Rate of customers willing to camp is 21.82%. Decimals are rounded off. Tents are assumed to have a capacity of 5 persons. Sample Computations: 1st Year Jan March = (330*.2182) = 72/5*.5*100 = 720 = (72/5*.5*200) =1440 = (720+1440) = 2160 nd 2 Year Jan March = 2160*1.10 = 2376

7.5.7 INCOME FROM FUNCTION HALL

Function Hall 3rd year 4th year Month Income (No. of Events*50000) January - March 300000 330000 363000 399300 April - June 300000 330000 363000 399300 July - September 300000 330000 363000 399300 October - December 300000 330000 363000 399300 Total 1200000 1320000 1452000 1597200 Note: 2 events per month are initially assumed and will increased at 10% per year. 7.5.8 INCOME FROM RESTAURANT Restaurant 2nd year 1st year 2nd year 5th year

439230 439230 439230 439230 1756920

3rd year 4th year 5th year Month Income (No. of Customers willing to eat in the Restaurant*Min Budget) 141000 155100 170610 187671 206438 January - March 393000 432300 475530 523083 575391 April - June 75000 82500 90750 99825 109808 July - September 331500 364650 401115 441227 485349 October - December 940500 1034550 1138005 1251806 1376986 Total Note: Refer to Table 1 of General Assumptions. Computation is the same with the other amenities. Only that, this time the rate of customers willing to eat in the restaurant will be 28.43%. The minimum result of budget (Php 1,500) is taken from the survey to incorporate the concept of conservatism on the data. Revenue from first year operation is increased by 10% each year for the next years. Sample Computation: 1st Year Jan March = 330*.2844 = 94*1500 = 141000 2nd Year Jan March = 141000*1.1 = 155100

1st year

7.5.9 INCOME FROM MINI BAR Restaurant 2nd year

3rd year 4th year 5th year Month Income (No. of Customers willing to go in the Mini Bar*Min Budget) January - March 32000 35200 38720 42592 46851 April - June 89000 97900 107690 118459 130305 July - September 17000 18700 20570 22627 24890 October - December 75000 82500 90750 99825 109808 Total 213000 234300 257730 283503 311853 Note: Refer to Table 1 of General Assumptions. Computation is the same with the other amenities. Only that, this time the rate of customers willing to go in the mini bar will be 19.34%. The minimum result of budget (Php 500) is taken from the survey to incorporate the concept of conservatism on the data. Revenue from first year operation is increased by 10% each year for the next years. Sample Computation: 1st Year Jan March = 330*.1934 = 64*500 = 32000 2nd Year Jan March = 32000*1.1 = 35200 7.5.10 INCOME FROM SOUVENIR SHOP Souvenir Shop Souvenir Items Month T-shirts Key Chains Budges Fans (Customers (Customers (Customers (Customers Willing to Willing to Willing to Willing to Buy*120) Buy*10) Buy*15) Buy*20) 1200 3360 600 2760 100 280 50 230 150 420 75 345 200 560 100 460 1650 4620 825 1815 5082 908 1st year 2nd year 3rd year Income 4th year 5th year

1st year

January March April June July September October December Total

1997 5590 998

2196 6149 1098

2416 6764 1208 5556 15944

3795 4175 4592 5051 10890 11979 13177 14495 Refer to Table 1 of General Assumptions. Computation is the same with the other amenities. Only that, this time the rate of customers willing to buy souvenir will be 3%. Revenue from first year operation is increased by 10% each year for the next years.

7.6 FINANCIAL RATIOS 7.6.1 PROFITABILITY RATIOS


RETURN ON INVESTMENT Net Income Before Interest and Taxes Average Investment Percentage 1st Year 2nd Year 3rd Year 4th Year 5th Year

1167808 2456588 23124423 22099145 5.05% 11.12%

3933851 4961223 5727643 21073867 20048589 19023311 18.67% 24.75% 30.11%

RETURN ON EQUITY Net Income Before Interest and Taxes Average Partners' Equity Percentage

1st Year

2nd Year

3rd Year

4th Year

5th Year

1167808 2456588 20354724 21332240 5.74% 11.52%

3933851 4961223 5727643 23306973 26216533 29812124 16.88% 18.92% 19.21%

OPERATING LEVERAGE Total Gross Profit Net Income Before Interest and Taxes Degree of Leverage

1st Year

2nd Year

3rd Year

4th Year

5th Year

9780276 11190556 1167808 2456588 8.37 4.56

12618364 13756699 14607491 3933851 4961223 5727643 3.21 2.77 2.55

7.6.2 SOLVENCY and LIQUIDITY RATIOS


DEBT-TO-EQUITY RATIO Debt (12%) Equity Percentage Ratio 1st Year 2nd Year 3rd Year 4th Year 5th Year 709112 31758595 2.23% 0.02:1

3545559 2836448 2127336 1418224 20617946 22046534 24567411 27865654 17.20% 12.87% 8.66% 5.09% 0.17:1 0.13:1 0.09:1 0.05:1

DEBT-TO-ASSETS RATIO Debt Assets Percentage Ratio

1st Year

2nd Year

3rd Year

4th Year

5th Year 709112 32467707 2.18% 0.02:1

3545559 2836448 2127336 1418224 24163505 24882982 26694747 29283878 14.67% 11.40% 7.97% 4.84% 0.15:1 0.11:1 0.8:1 0.05:1

EQUITY-TO-ASSETS RATIO Equity Assets Percentage Ratio

1st Year

2nd Year

3rd Year

4th Year

5th Year 31758595 32467707 97.82% 0.97:1

20617946 22046534 24567411 27865654 24163505 24882982 26694747 29283878 85.33% 88.60% 92.03% 95.16% 0.85:1 0.89:1 0.92:1 0.95:1

TIMES INTEREST EARNED Net Income Before Interest and Taxes Interest Expense TIMES INTEREST EARNED

1st Year 1167808 425467 2.74

2nd Year 2456588 425467 5.77

3rd Year 3933851 340374 11.56

4th Year 4961223 255280 19.43

5th Year 5727643 170187 33.66

7.6.3 PROJECT EVALUATION


PAYBACK PERIOD Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Net Cash Inflow 1551721 2453867 3546155 4323520 4918219 6764766 7404236 Original Ivestment 23637063 22085342 19631475 16085320 11761799 6843580 78815 Payback 1 1 1 1 1 1 0.01 6.01 Years

8. FINANCIAL ANALYSIS
COMPARATIVE STATEMENT OF FINANCIAL POSITION Common Size Percentages 1st Year Assets Current Cash & Cash Equivalents Non-Current Building, net Equipments, net Furniture and Fixtures, net Land Intagible Assets Pre-Investment, net Site Development, net Total Total Assets Liabilities Current Non-Current Loan Payable Equities Partners' Capital Total Liabilities and Capital 85.33% 100.00% 88.60% 100.00% 92.03% 100.00% 95.16% 100.00% 97.82% 100.00% 14.67% 11.40% 7.97% 4.84% 2.18% 2.45% 10.44% 93.58% 100.00% 1.78% 9.60% 86.75% 100.00% 1.11% 8.45% 77.02% 100.00% 0.51% 7.25% 66.71% 100.00% 0.00% 6.13% 57.01% 100.00% 29.57% 3.93% 26.49% 20.69% 27.28% 3.62% 24.37% 20.09% 24.09% 3.18% 21.46% 18.73% 20.74% 2.73% 18.41% 17.07% 17.60% 2.31% 15.57% 15.40% 6.42% 13.25% 22.98% 33.29% 42.99% 2nd Year 3rd Year 4th Year 5th Year

Analysis:

The Balance Sheet of Les Chateaux Resort and Adventures shows that there had been a significant change in the percentage of Current and Non-current Assets, using Total Assets as the base for the computation of the rate. In the first year of its operations, the Current Assets, which is composed of Cash and Cash Equivalents, increased from 6.42% to 42.99%, in its fifth year. This is attributable to the increasing cash inflows from its operations. The Non-current Assets, however, decreased from 93.58% to 57.01% due to the annual depreciation of Building, Equipments and Furniture and fixtures and amortization of Intangible Assets. Also, the statements for the five-year period reflects a decreasing percentage of Total Liabilities and Total Equities, using Total Assets as basis. This is an indicator that the company has a lesser reliance to outside creditors in acquiring additional financing needed.

COMPARATIVE STATEMENT OF INCOME Common Size Percentages 1st Year 100.00% 20.77% 79.23% 100.00% 80.00% 20.00% 74.01% 2nd Year 100.00% 20.77% 79.23% 100.00% 80.00% 20.00% 74.20% 3rd Year 100.00% 20.77% 79.23% 100.00% 80.00% 20.00% 74.31% 4th Year 100.00% 20.77% 79.23% 100.00% 80.00% 20.00% 74.27% 5th Year 100.00% 20.77% 79.23% 100.00% 80.00% 20.00% 74.11%

Gross Revenue Less: Direct Costs Total Gross Sales Less: Cost of Sales Total Total Gross Profit Operating Expenses Salaries and Wages Advertising Insurance Utilities Depreciation and Amortization Supplies Repairs and Maintenance Miscellaneous Communication Total Total Operating Income(Loss) Net Income before Interest and Taxes Interest Expense Net Income before Taxes Less: Taxes Net Income (Loss)

43.59% 2.72% 2.84% 5.45% 7.76% 0.68% 0.91% 0.91% 0.32% 65.17% 8.84% 8.84% 3.15% 5.69% 1.71% 3.98%

38.19% 2.39% 2.49% 5.44% 5.44% 6.80% 0.63% 0.88% 0.31% 57.91% 16.29% 16.29% 2.76% 13.53% 4.06% 9.47%

33.92% 1.06% 2.21% 5.47% 6.04% 0.58% 0.86% 0.71% 0.30% 51.15% 23.17% 23.17% 1.96% 21.21% 6.36% 14.85%

31.10% 0.97% 2.03% 5.48% 5.54% 0.56% 0.86% 0.65% 0.30% 47.49% 26.79% 26.79% 1.35% 25.44% 7.63% 17.81%

29.22% 0.91% 1.90% 5.44% 5.20% 0.55% 0.89% 0.61% 0.31% 45.05% 29.06% 29.06% 0.84% 28.21% 8.46% 19.75%

Analysis:

Les Chateaux Resort and Adventures Income Statements for the span of five years reflects a favorable change of Net Income after deducting Interests and Taxes. Based from the table, the said line item increased from 3.98% to 19.75%. The base used in calculating the percentages was the combined result of Gross Revenues and Gross Sales. It can also be observed that the Total Gross Profit is almost consistent for five years but the Total Operating Expenses is decreasing due to the decrease of some expenses assumed for the succeeding years such as Advertising and Insurance. Also the increase in Income after Interests and Taxes is brought by the decrease in the payment of Interest Expenses because of the annual payment of its liabilities.

COMPARATIVE STATEMENT OF FINANCIAL POSITION Horizontal Analysis Year 2 - Year 1 Increase (Decrease) Assets Current Cash & Cash Equivalents Non-Current Building, net Equipments, net Furniture and Fixtures, net Land Intagible Assets Pre-Investment, net Site Development, net Total Total Assets Liabilities Current Non-Current Loan Payable Equities Partners' Capital Total Liabilities and Capital 1744755 112.44% 2837043 86.06% 3614409 58.93% 4209107 43.18% Year 3 - Year 2 Increase (Decrease) Year 4 - Year 3 Increase (Decrease) Year 5 - Year 4 Increase (Decrease)

(357690) (50000) (336938) 0 (147900) (132750) (1025278) 719477

(5.01%) (5.26%) (5.26%) 0.00% (25.00%) (5.26%) (4.53%) 2.98%

(357690) (50000) (336938) 0 (147900) (132750) (1025278) 1811765

(5.27)% (5.56)% (5.56)% 0.00% (33.33%) (5.56%) (4.75%) 7.28%

(357690) (50000) (336938) 0 (147900) (132750) (1025278) 2589130

(5.56%) (5.88%) (5.88%) 0.00% (50.00%) (5.88%) (4.99%) 9.70%

(357690) (50000) (336938) 0 (147900) (132750) (1025278) 3183829

(5.89%) (6.25%) (6.25%) 0.00% (100.00%) (6.25%) (5.25%) 10.87%

(709112)

(20.00%) (709112)

(25.00%) (709112)

(33.33%) (709112)

(50.00%)

1428589 719477

6.93% 2.98%

2520877 1811765

11.43% 7.28%

3298242 2589130

13.43% 9.70%

3892941 3183829

13.97% 10.87%

Analysis: It is shown that the Current Assets which is composed primarily of the Cash and Cash Equivalents is the only item in the Total Assets that is increasing, although at a decreasing rate, from 112.44% to 43.18%. The book value of Non-current Assets are all decreasing due to the annual depreciation of the fixed assets and amortization of intangible assets. In addition, there is also no additional investment on fixed assets during the first five years of operations that is why the value of the Non-current assets are declining continuously. The Total Liabilities are decreasing at an increasing rate from 20% to 50%. This is because the Loan Payable account declined due to the annual payment of loans. By the end of the fifth year, Les Chateaux Resort and Adventures total capital structure would change from borrowing to an equity provided by the profit earned from its operations. This is a favorable condition because these changes indicate a strong financial position in the long run

COMPARATIVE STATEMENT OF INCOME Horizontal Analysis


Year 2 - Year 1 Increase (Decrease) % 1750632 14.53% 363640 14.53% 1386992 14.53% 116439 10.00% 93151 10.00% 23288 10.00% 1410280 14.42% Year 3 - Year 2 Increase (Decrease) 1769815 367624 1402191 128083 102466 25617 1427808 Year 4 - Year 3 Increase (Decrease) 1401217 291059 1110157 140891 112713 28178 1138336 Year 5 - Year 4 Increase (Decrease) 1034728 214933 819796 154980 123984 59174 850792

Gross Revenue Less: Direct Costs Total Gross Sales Less: Cost of Sales Total Total Gross Profit Operating Expenses Salaries and Wages Advertising Insurance Utilities Depreciation and Amortization Supplies Repairs and Maintenance Miscellaneous Communication Total Total Operating Income(Loss) Net Income before Interest and Taxes Less: Interest Expense Net Income before Taxes Less: Taxes Net Income (Loss)

% 12.82% 12.82% 12.82% 10.00% 10.00% 10.00% 12.76%

% 9.00% 9.00% 9.00% 10.00% 10.00% 10.00% 9.02%

% 6.10% 6.10% 6.10% 10.00% 10.00% 10.00% 6.18%

0 0 0 100800 0 4500 12000 0 4200 121500 1288780

0.00% 0.00% 0.00% 14.00% 0.00% 5.00% 10.00% 0.00% 10.00% 1.41% 110.36%

0 (180000) 0 108000 0 4725 13200 0 4620 (49455) 1477263

0.00% (50.00%) 0.00% 13.16% 0.00% 5.00% 10.00% 0.00% 10.00% (0.57%) 60.13%

0 0 0 86400 0 4961 14520 0 5082 110963 1027372

0.00% 0.00% 0.00% 9.30% 0.00% 5.00% 10.00% 0.00% 10.00% 1.28% 26.12%

0 0 0 57600 0 5209 15972 0 5590 84372 766420

0.00% 0.00% 0.00% 5.67% 0.00% 5.00% 10.00% 0.00% 10.00% 0.96% 15.45%

1288780 0 1288780 386634 902146

110.36% 0.00% 171.37% 171.37% 171.37%

1477263 (83149) 1560412 468124 1092288

60.13% (20.00%) 76.46% 76.46% 76.46%

1027372 (83149) 1110522 333157 777365

26.12% (25.00%) 30.84% 30.84% 30.84%

766420 (83149) 849570 254871 594699

15.45% (33.33%) 18.03% 18.03% 18.03%

Analysis: The Gross Revenues and Direct Costs increased at a decreasing rate, both from 14.53% in the 1 st year to 6.10% on the 5ft year. On the other hand, both the Gross Sales and the Cost of Sales increased at 10%. Overall, the Total Gross Profit increased at a decreasing rate, which is affected by the Gross Profit from the Gross Revenues. All but the Utilities Expenses remain constant for five years. The Utilities Expenses increased year after year although at a decreasing rate from 14% to 5.67%. The Interest Expense declined every year because of the principal repayment of Loans Payable. It can be concluded that the operating performance of the resort is satisfactory because the Net Income generated after considering the Interests and Taxes is increasing every year.

9. SOCIAL DESIRABILITY
9.1 SOURCE OF EMPLOYMENT The Les Chateaux Mountain Resort and Adventures shall serve as a source of employment to those people who are unemployed. These people who will be benefited from the project shall include those workers who will construct the buildings and infrastructures and those employees who will be needed in the resort to supervise and facilitate the different amenities and services offered to the public. The potential people who will be employed will most likely come from the nearby barangays or neighboring towns in Ilocos Norte.

9.2 EMPLOYEE COMPETITIVENESS AND PROFESSIONALISM Potential employees shall undergo trainings and seminars to enhance their personality and attitude towards work and improve their knowledge and skills about their own specializations. These trainings and seminars to be conducted are aimed at making the human resources to work competitively and professionally.

9.3 SOURCE OF LIVING With the income derived from their employment, their families will also be benefited since they depend on them for their living. Thus, this would be enough to cater daily necessities of the family.

9.4 TOURISM The establishment of Le Chateaux Resort and Adventures in Dingras, Ilocos Norte will make the town gain more popularity as a tourist destination both for local or foreign markets since this offers a unique mountain resort which features different recreational activities, highlighting the magnificent falls of Dingras located at three consecutive barangays.

9.5 ECONOMY The taxes paid by the resort constitutes to additional sources of fund by the government which will be utilized to finance their upcoming projects in the future.

10. APPENDICES

APPENDIX A
Mariano Marcos State University COLLEGE OF BUSINESS, ECONOMICS AND ACCOUNTANCY Batac City, Ilocos Norte

October 3, 2013 Department of Labor and Employment Pacific Hardware Bldg., Abadilla St. Laoag City, Ilocos Norte Sir/Madam: We are BS Accountancy IV students of Mariano Marcos State University enrolled in management consultancy. Currently, we are conducting a study entitled Les Chateaux Resorts and Adventures. This study focuses in evaluating the feasibility of establishing a resort and amusement parks in Ilocos Norte to cater the need for a highly-developed resort and adventure parks and improve the stereotypical resort type available in the province. In connection to this, may we request our team to gather important information relevant to the study of this feasibility to help us in conducting this planned project, particularly in the salary basis of employees that will be hired for employment. Rest assured that all data and information will be properly cited in the study. We look forward to a positive response with regards to our request. Thank you very much for your valuable help.

Very respectfully yours,

MARK JOSEPH RESPICIO

JOHN ALEXIS D. ILACAD

VINCENT JOHN A. ALIPIO

BRADLEY POLICARPIO

KAI-MARIE BARROGA

Noted: OSCAR M. AGPAOA, Ph. D. Professor, Accounting 116

APPENDIX B
Mariano Marcos State University COLLEGE OF BUSINESS, ECONOMICS AND ACCOUNTANCY Batac City, Ilocos Norte

October 3, 2013 Department of Environment and Natural Resources PFDPIN Bldg., Apolinario Castro Street, Laoag City, Ilocos Norte Sir/Madam: We are BS Accountancy IV students of Mariano Marcos State University enrolled in management consultancy. Currently, we are conducting a study entitled Les Chateaux Resorts and Adventures. This study focuses in evaluating the feasibility of establishing a resort and amusement parks in Ilocos Norte to cater the need for a highly-developed resort and adventure parks and improve the stereotypical resort type available in the province. In connection to this, may we request our team to gather important information relevant to the study of this feasibility to help us in conducting this planned project, particularly in the requirements needed in the establishment of such in the province and the costs to each requirement needed to comply with. Rest assured that all data and information will be properly cited in the study. We look forward to a positive response with regards to our request. Thank you very much for your valuable help.

Very respectfully yours,

MARK JOSEPH RESPICIO

JOHN ALEXIS D. ILACAD

VINCENT JOHN A. ALIPIO

BRADLEY POLICARPIO

KAI-MARIE BARROGA

Noted: OSCAR M. AGPAOA, Ph. D. Professor, Accounting 116

APPENDIX C
Mariano Marcos State University COLLEGE OF BUSINESS, ECONOMICS AND ACCOUNTANCY Batac City, Ilocos Norte

October 3, 2013 Department of Trade and Industry 3rd Floor Pacific Building, Abadilla Street LaoagCity ,Ilocos Norte Sir/Madam: We are BS Accountancy IV students of Mariano Marcos State University enrolled in management consultancy. Currently, we are conducting a study entitled Les Chateaux Resorts and Adventures. This study focuses in evaluating the feasibility of establishing a resort and amusement parks in Ilocos Norte to cater the need for a highly-developed resort and adventure parks and improve the stereotypical resort type available in the province. In connection to this, may we request our team to gather important information relevant to the study of this feasibility to help us in conducting this planned project, particularly in the requirements needed in the establishment of such in the province and the costs to each requirement needed to comply with. Rest assured that all data and information will be properly cited in the study. We look forward to a positive response with regards to our request. Thank you very much for your valuable help.

Very respectfully yours,

MARK JOSEPH RESPICIO

JOHN ALEXIS D. ILACAD

VINCENT JOHN A. ALIPIO

BRADLEY POLICARPIO

KAI-MARIE BARROGA

Noted: OSCAR M. AGPAOA, Ph. D. Professor, Accounting 116

APPENDIX D
FEASIBILITY STUDY QUESTIONNAIRE
A. PERSONAL INFORMATION NAME PRESENT EMPLOYMENT AGE GENDER

Male Female

Government Private
B. SURVEY

NGO

Self-Employed Unemployed Student

Instruction: Please shade on the respective box of your choices.

1. What are the activities would you like to experience in a mountain resort?

Swimming pool experience Zip line Trekking Rock / Wall Climbing Canopy walk (hanging bridge, monkey bridge, etc) Boating Experience Cable Car Others (Pls. specify) _______________________________________
2. How much are you willing to spend to avail the activities youve chosen above?

Below 300 300 499 500 999 1000-1499 1500 and above
3. What time of the year you are most likely to visit a mountain resort?

January - March April - June July September October December


4. How many times in a year would you most likely visit a mountain resort?

1 2

3 4

Others (Pls. specify) _

5. What amenities would you like to avail in a mountain resort?

Spa Sauna Swimming pool Bath house Others (Pls. specify) __________________________________
6. What other facilities would you like to have in a mountain resort?

Restaurant
How much are you willing to spend in the restaurant?

Below 300 300 499 500 999 1000 - 1499 1500 and above Butterfly Garden Mini Bar
How much are you willing to spend in the mini bar?

Below 300 300 499 500 999 1000-1499 1500 and above Mini Zoo Picnic Huts Camping sites Others (Pls. specify) ________________________________
7. Would you like to check-in (stay) in one of the rooms in the mountain resort?

Yes No

8. How much of your budget are you amenable to spend in the mountain resort?

Below 300 300 499 500 999 1000-1499 1500 and above
9. What other features or things would you like to see in the mountain resort? ______________________________________________________________________________ ______________________________________________________________________________ 10. If a mountain resort will open in Ilocos, will you go and see it?

Yes No

APPENDIX E
BASIS OF ASSUMPTIONS (THE RESULT OF THE SURVEY) The researchers gather information about the project through a survey questionnaire which is distributed to a sample population size of 200 persons who belong in different strata (Age, Gender, and Employment Status). Activities Customers want to Experience in a No. of Mountain Resort Respondents Swimming pool Experience 52 Zip line 96 Trekking 54 Rock/Wall Climbing 70 Canopy Walk 50 Boating Experience 52 Cable Car 50 Others: Racing Area 2 Total 426 % 12.21% 22.54% 12.68% 16.43% 11.74% 12.21% 11.74% 0.47% 100% Rank 1 3 2

Amount Customers are Willing to Spend in the Activities Below 300 300-499 500-999 1000-1499 1500 and above Total

No. of Respondents 41 31 28 34 66 200

% 20.50% 15.50% 14.00% 17.00% 33.00% 100%

Rank 2

3 1

Seasons Customers are Expected to Visit Jan-March April-June July-September October-December Total

No. of % Respondents 34 14.98% 95 41.85% 18 7.93% 80 35.24% 227 100.00%

Rank 3 1 2

Rate a Customer is Expected to Visit per Year 1x 2x 3x 4x Others 5x Total

No. of Respondents 50 66 59 22 3 200

% 25.00% 33.00% 29.50% 11.00% 1.50% 100%

Rank 3 1 2

Amenities Customers are Expecting in the Resort Spa Sauna Swimming pool Bath house Others: Jacuzzi Body Massage Total

No. of Respondents 126 105 99 90 3 3 426

% 29.58% 24.65% 23.24% 21.13% 0.70% 0.70% 100%

Rank 1 2 3

Facilities/Services Customers want to have in a Mountain Resort Restaurant Butterfly Garden Mini Bar Mini Zoo Picnic Huts Camping sites Total

No. of Respondents 172 58 117 31 95 132 605

% 28.43% 9.59% 19.34% 5.12% 15.70% 21.82% 100%

Rank 1 3

Amount Customers are Willing to Spend in Restaurant Below 300 300-499 500-999 1000-1499 1500 and above Total

No. of Respondents 24 31 31 40 46 172

% 13.95% 18.02% 18.02% 23.26% 26.74% 100%

Rank

Amount Customers are Willing to Spend in Mini Bar Below 300 300-499 500-999 1000-1499 1500 and above Total

No. of Respondents 25 18 31 15 28 117

% 21.37% 15.38% 26.50% 12.82% 23.93% 100%

Rank

Willingness to Stay in the Resort's Hotel Yes No Total

No. of Respondents 185 15 200

% 92.50% 7.50% 100%

Rank 1

Budgeted Amount Customers are Willing to Spend Below 300 300-499 500-999 1000-1499 1500 and above Total

No. of Respondents 15 15 35 29 96 190

% 7.69% 7.69% 18.46% 15.38% 50.77% 100%

Rank

Other Features Costumers are Expecting to See in the Resort Skydiving Parks/Garden Falls Cave Souveneir Shop Top of the mountain building Internet Caf/Wifi Zone Stargazing Activity Rizal Monument/ Statues of Superheroes Dancing Fountain Fish Pond View Deck

No. of Respondents 1 6 9 1 6 1 5 1 2 1 1 2

% 0.50% 3.00% 4.50% 0.50% 3.00% 0.50% 2.50% 0.50% 1.00% 0.50% 0.50% 1.00%

Rank 2 1 2 3

Hot Spring Function Hall Sports Area Welcome Tribal Dance Fish Spa Undecided/None Total

6 3.00% 1 0.50% 4 2.00% 1 0.50% 1 0.50% 151 75.50% 200 100%

Viability of the Resort to the Public Yes No Undecided Total

No. of % Respondents 191 95.50% 6 3.00% 3 1.50% 200 100%

Rank 1

APPENDIX F
PROVINCE OF ILOCOS NORTE LAOAG CITY

I HEREBY CERTIFY THAT THE FOLLOWING ESTIMATES ABOUT THE PROJECT INVESTMENT OF LES CHATEAUX MOUNTAIN RESORTS AND ADVENTURES ARE TRUE AND CORRECT BASED ON MY EXPERTISE AND PROFESSIONAL JUDGEMENT.

Description

m required

Construction 2 Rate/ m

Total Cost

Function Hall, Grand Lobby, Restaurant, Bar and Souvenir Shop (First Floor) Porche Arcade and Drop Off Area (First Floor) 20 Hotel Rooms (Sencond Floor) 2 Gazebos Spa 8 Cottages First Expansion 40 Hotel Rooms (Third and Fourth Floor) Second Expansion 40 Hotel Rooms (Fifth and Sixth Floor) Total Building/Covered Area

1,876 821 1,420 290 134 120 2,840 2,840

1,750 1,300 2,000 850 500 250 2,000 2,200

3,283,000 1,067,300 2,840,000 246,500 67,000 30,000 5,680,000 6,248,000 19,461,800

JAMES RODERICK MANUEL ARCHIRECT

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