Project Profile on Mott MacDonald

Water Sporting Activities in inland lakes and ponds iNDEXTb

Sector Tourism
Sub - sector Adventure
Profile No. TR - 10
Project Title Water sporting activities in inland lakes and ponds at Sardar Sarovar
and Saputara

Project Description
Water sports refer to water based sporting activities
like skiing, motor rides, water scooters and
speedboats. These rides have attained popularity in
Goa. A wide range of equipment is required for these
activities like water scooters, rowboat, pedal boat, Sardar Sarovar

etc. The usage of equipment would differ from

destination to destination due to the geographical Saputara
nature of the water. Water skiing and motor rides can
be implemented at all destinations, whereas pedal
boats and rowboats should be used at Saputara.

Market and Growth Drivers

Market
The Market demand for the Water Sport Activities will come from the Domestic and foreign tourists
visiting the destinations. The target market for these activities will be Upper class and Middle class
Domestic, Foreign tourists, Students and Business tourists. The local/weekend tourists can also
generate substantial demand.

Tourist inflow into Gujarat in 2005

Connecti
Domestic Tourist

Interest/Circuits

vity
Foreign Tourist

Places of
(No’s)
(lakh)
Place

Road

Rail

Air

Saputara 1.38 78 Ahwa, Saputara Excellent Inadequate Inadequate

Sardar 0.34 384 Ankleshwar, Bharuch, Dahej, Excellent Inadequate Inadequate
Sarovar Garadeshwar, Jambusar, Kabirvad,
Kavi, Malsamot, Navagam,
Rajpipla, Shuklatrith.
Source: GITCO

TR-10 1
Project Profile on Mott MacDonald
Water Sporting Activities in inland lakes and ponds iNDEXTb

Growth Drivers

 Increase in number of foreigners visiting India due to the “Brand India” which offers everything
that a foreigner wants viz Heritage, Adventure, Culture, Wild Life, Pilgrimage, etc. As per
World Travel and Tourism Council (WTTC), the number of foreign tourists visiting India has
grown from 3.46 million in 2004 to 3.92 million in 2005.

 Government of India (GOI) estimates the global population of Non Resident Indians (NRI’s) at
around 20-25 million. This sector of population regularly visits India. A major chunk of this
population is the NRI of Gujarati origin popularly known as “NRG”. Off late there is a
substantial increase in NRIs/NRGs visiting India. The main reason being the strong bonding
to the native land and culture.

 According to the Department of Tourism (DOT - GOI), there are more then 7.2 Million Indians
traveling abroad every year. There is a substantial increase in these numbers every year and
is estimated to be growing at more than 15 %.

 According to DOT – GOI, the total population of Domestic Tourism in the year 2004 was 367
million. There was an increase of 19 % over the previous year. It is expected that domestic
tourism will grow robustly in the future owing to the rising income levels and economic growth.

 The tourist growth rate in Gujarat is around 40 %.

Why Gujarat?

Business Tourism Religious Tourism Fun Tourism

Most Industrialized state in the country Gujarat- Home to multitude Availability of Beaches, diverse
with high presence of Indian and devotional centres and temples landscapes from forests to deserts,
Global companies. with Famous Regious Centres like hills to plain land, Modern Tourism
Dwarka, Dakor, Amabaji, Sites like Drive-in, Science City,
18 new SEZs under implementation Palitana, Somnath, Shamlaji, Water parks, Amusement parks,
along with various other industrial parks Bahucharaji, Pavagadh, Kabirvad, Theme based parks, and others like
Mahudi, Sun Temple, Parks, Zoos, Lakes, Museums,
Substantial market Akshardham, Swaminarayan Libraries, Shopping malls and
temple, Jain temples, Hindu multiplexes
Archeological &Heritage Temples and Sudama Mandir
Tourism
State having a wide variety of Historical Wildlife Tourism
Forts, Palaces, Dargahs, Temples, and Gujarat is habitat for the world's
places of historical importance in rarest as well large number of
Gujarat
India’s freedom Struggle. These sites Fauna & Flora, Fauna includes
Proactive Government &
are still virgin and have a huge Asiatic Lions, Wild Ass, Black Bucks,
aggressive Marketing
potential for development. Bears, Monkeys, Nilgai, Paradise
Untapped Tourism
Flycatcher, Chinkaras, Dolphins,
opportunity
World heritage sites like Lothal and Whale Shark and Migratory Birds
Strategic Location
Dholavera, Champaner and the like Flamingoes, Pelican, Storks.
Unique blend of
Heritage walk Flora includes species of Khair,
pilgrimage, Adventure,
Sadad, Timru, Babul, Salai, Khakro,
Hill Station, Beaches,
Ber, Asundro and Bordi
Heritage, Desert etc
Cultural Tourism
available in the state
State has a unique Art &Handicraft like The state also has National park/
Bhandani, Kutchhi Work, bamboo Craft Sanctuaries at Gir National Park,
and Khadi, marine National Park, Vansda
Others National Park, Nalsarovar Bird
Unique festivals and fairs like Navratri, Highway Tourism Sanctuary, Kutch Bustard Sanctuary
Makarsankranti, Sharad Poornima, Medical Tourism and Velawadar Black Buck
Mahashivaratri and Tarnetar Festival Education Tourism Sanctuary.

TR-10 2
Project Profile on Mott MacDonald
Water Sporting Activities in inland lakes and ponds iNDEXTb

Suggested Capacity & Project Cost

The water sports activities will cater to 200-250 persons per day. This figure will shoot up during the
tourist season and week ends. The investment for this size of the project would be around INR 20
million (US $ 0.5 million). Considering 2 locations, the total investment in this sector works to around
INR 40 million (US $ 1 Million).

Project Cost (Rs. Million)

Particulars Total
Land & Site Development 0.6
Building 1.0
Plant and machinery / Equipment 16.0
Office Equipments 0.5
Furniture & Fixtures 0.1
Preliminary & Pre-Operative Exp. 0.9
Provision for Contingencies 1.0
Total Capital Cost of Project 20.1 20.1
Say 20 Say 20

Means of Finance
Particulars Amount, Rs. Million
Equity 6
Total Long Term Borrowings 14
Total Means of Finance 20

Major Financial Indicators

The major financial indicators on the basis of 10 year workings are:
Average for Project
Gross Profit margin 33.68%
Net Profit Margin 16.41%
ROI 51.14%
Average DSCR 4.06
IRR 32.48%

Project Time Line

The approximate time duration required for the establishment of this type of project is around 8 – 10
months.

TR-10 3
Project Profile on Mott MacDonald
Water Sporting Activities in inland lakes and ponds iNDEXTb

Suggested Location
The suggested locations for the Water Sports Activities are Sardar Sarovar and Saputara.

Major Infrastructure Required

Connectivity: Good Rail, Road and Air connectivity to the location is the major infrastructure
requirement for the project.
Land Availability: As the project is in the hospitality sector, Land availability at prime location is a
major factor for the success of the project. It is very difficult to predict the land cost for the project as
location and availability would be very critical components while calculating the land prices.
Built up area: The total built up area requirement for the project is around 1000 Sq feet. The cost of
construction is taken as Rs.500/Sq Feet.
Utilities Requirement: The major requirements of utilities are power, water and sanitation facilities.

Clearances Required
Environment clearance from Gujarat Pollution Control Board
Water and Power supply
Registration as commercial establishment with the required state/district authority

Agencies to be contacted
Industrial Extension Bureau
Mott MacDonald India
Tourism Corporation of Gujarat Limited

TR-10 4