Palm Beach Resort.docx

PROJECT PROFILE ON THE ESTABLISHMENT OF PALM BEACH RESORT AT BATTICOLOA

1. Executive Summary Sri Lanka is one of the leading romantic destinations in the whole world. The land of serendipity brings spiritual tranquility and a chance to rediscover oneself. The beauty of this tiny island is simply breath-taking. Known for its enchanting ancient ruins, endless softsanded beaches, imposing mountains, colourful festivals, tempting water sports, dense wildlife, diverse ethnical groups and off the top hospitality from the local residents.

The project envisages the establishment of modern hotel and restaurant plant with 150 self contend bed rooms at Palm Beach Resort in Batticoloa.

Since there is no adequate modern hotels and restaurant at Palm Beach Resort that accommodate the required services of foreign and local tourists, the demand for the service is very attractive. The total initial investment requirement is estimated at 43,241 million, of which 75% is for building construction. The project will create employment opportunities for 260 persons in direct and 300 persons Indirectly. The project is financially viable with an internal rate of return (IRR) of 20%.

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Overview of The Industry

Sri Lanka has always been a tourist destination. In the past, due to its strategic location, Sri Lanka attracted many merchants and explorers. Its uniqueness and size earned it the name 'Taprobane' and 'The Pearl of the Indian Ocean'. Today, Sri Lanka offers leisure and business travellers a spectrum of attractions. The commercial cities, Colombo, Kurunegala and Kandy offer business travellers an array of business opportunities and trade options. The sandy white beaches and attractive underwater life that surrounds the island, gives its visitors a chance to unwind and relax in a warm and comfortable setting. The beautiful rain forests, mountain ranges and scenic plantations can be visited within a few hours (approx. 4-5 hours travel time), and visitors can also visit the wildlife sanctuaries that are located in this small miracle. The Sri Lankan Government together with the Sri Lanka Tourism Development Authority (SLTDA) are committed to the development and growth of the local tourism industry. The country’s Board of Investment (BOI) offer potential foreign investors lucrative incentives to start up with tourism Currently Sri Lanka Tourism Development Authority has classified Sri Lanka into several resort regions suitable for tourism development 

Colombo and Greater Colombo Resort Region: The Colombo and Greater Colombo Resort Region spreads along the Mount Lavinia in the south to Negombo in the north. Colombo city is the main part of the zone, and is the center for business activities, conferences and sport events in the country. Colombo serves as both a gateway and stopover point for international tourists.



South Coast Resort Region: The south coast zone extends from Wadduwa to Tissamaharama. The zone has been divided into two main regions. The first region extends from Wadduwa to Galle. Coastal areas like Kalutara, Beruwala, Bentota, Dedduwa, Madu Ganga, Balapitiya, Ahungalla, and Hikkaduwa are included in this region. The second region, extending from Galle to Tissamaharama, 4|Page

includes Unawatuna, Koggala, Weligama, Mirissa, Matara, Tangalle and Hambantota areas as sub-points of the zone. 

East Coast Resort Region: The East Coast Resort Region extends from Kuchchaveli in the north to Pottuvil in the south. The main tourism zones in this region are Arugam Bay, Pasikudah, Trincomalee and Nilaveli.

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West Coast Resort Region: The West Coast Resort Region extends along Kalpitiya, Marawila and Waikkala areas.

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High Country Resort Region: Nuwara Eliya, Bandarawela and Maskeliya are included for the High Country Resort Region.

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Ancient Cities Resort Region: This region has five world heritage sites, namely Anuradhapura, Dambulla, Kandy, Polonnaruwaand Sigiriya. Other regions include Habarana, Giritale, Matale and Victoria.

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Other Resort Regions: This includes Yala, Udawalawa, Wasgamuwa, Pinnawala, and Ratnapura area.

Sustainable tourism Tourism also can have a great impact on the natural environment of the country.

Sri Lanka is truly blessed with one of the most diverse and unique natural environments in an island of our size. We have over 3,300 plant species, 80 mammals, 480 bird species, 66 amphibians, 180 reptiles and 240 butterfly species, with very high percentage of endemism. We boast of being the only country in the world where one can view the largest terrestrial animal on earth, the elephant, and the largest animal that even lived on earth, the Blue Whale. We also have the largest density of Asian elephants in the wild, and Yala is said to have one of the highest density of leopards. This range of spectacular flora and fauna prevalent in the country, backed by its rich 2,500 year old history and culture, therefore makes Sri Lanka a very unique tourism destination.

Milton Ellsworth, one of the founding fathers of tourism has said that to make a hotel development succeeded, there are three aspects to focus on - Location… location and location. Hence, in the desire to create more unique tourism offerings, we are often guilty in seeking out pristine environments for developments. We single out the unspoiled beach, the rural village and paddy field to develop our products. It is precisely because of this that all 5|Page

tourism development should take place in a responsible manner, giving priority to nurturing, protecting and enhancing the environment. If the environment is damaged or destroyed, we would be guilty of killing the goose that lays the golden eggs. More importantly, we would be guilty of having destroyed the wonderful gift of nature bequeathed to us by the Creator, and for having prevented our children from enjoying it. If properly managed and responsibly implemented, tourism can in fact be an avenue by which wildlife, nature and environment is preserved and nurtured.

Some years back, for the first time, the entire industry together with several marketing professionals and academics, got together and developed what was possibly the best positioning concept for Sri Lanka tourism as ‘Asia’s most Diverse, Authentic and Compact Island’. In my view, this encapsulates the very essence of sustainability and Sri Lanka tourism positioning, and should be the bedrock and foundation of all tourism development in Sri Lanka.

Therefore, in conclusion, it is quite evident from the foregoing that tourism can play a major role in the socio economic development of Sri Lanka and its people. At the same time, tourism can lead the way to help preserve, nurture and develop the pristine environment, and rich culture of Sri Lanka, to ensure proper and sustainable growth, which will benefit the entire country and its people.

Most spectacular places to visit in Batticaloa Batticaloa is a town situated in the Eastern region of Sri Lanka. It is located on the east coast, 69 miles south by south-east of Trincomalee, and is arranged on an island. Rich in distinct culture, traditions, lush nature Batticaloa has plenty to offer to people planning a visit at this place! It is also the perfect place to grasp the Villages lifestyle. The slow-paced town, which makes it best to refresh oneself from the stress of everyday lifestyle!

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If you’re out exploring the spectacular beauty of Sri Lanka, and you find yourself in the Batticaloa, here are some places you must visit to make it a vacation worth remembering. 1. Batticaloa Fort

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Batticaloa fort also known as Dutch Fort is situated in the midst of wonderful greenery and tidal ponds, having numerous stories and contentment attached with it. It was initially constructed by the Portuguese in 1628. Its impressive thick walls that hold much excellence and aesthetic esteem will most likely make you gaze with amazement. Inside the fort, an all-encompassing scenic perspective of the quiet tidal pond making the place more beautiful awaits the visitors.

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2. Batticaloa Lagoon

Head over to the Batticaloa Lagoon in Sri Lanka, it’s an appealing tour for those in quest of 8|Page

adventures. Consisting Puliayantheevu Island, Bone Island, and Buffalo Island, the spectacular bridges which allow tourists to traverse the lagoon, like the Lady Manning Bridge, are fairly interesting attractions. 3. Kallady Bridge

Batticaloa lagoon is popular for its `Singing Fish’. Amid the time of April to September, a clear but faint melodic sound like plucked guitar ascends from the lagoon waters along the Kallady Bridge. The ambiguous music is ascribed to a noise exuded from some type of marine life discovered in the lagoon. People plunge the end of an oar into the water and hold the opposite end to their ear to tune in to the music clearly.

4. Kallady Beach

Batticaloa is connected by bridge to a long, shoreline fringed peninsula that holds the Kallady neighborhoods. A few territories here have more shade than others. Kallady has an abandoned portion of beach that has ideally saved the tsunami proof all around. Kallady beach is a stunning 9|Page

shoreline on the east bank of Sri Lanka. Decent place to spend your evening in leisure and appreciate the dusk. 5. Kalkudah and Passikudah

Situated around 35 km. north of Batticaloa, the two exquisite seas sides of Kalkudah and Passikudah settle on either side of the palm-tipped Kalkudah cliff. The twin bay shorelines, all around shielded from the monsoon by an oceanic reef make up a perfect spot for windsurfing, bathing, water skiing, sailing and so forth. It is a standout amongst other known reef structures in the eastern bank of Sri Lanka and has also been intended as a Marine Sanctuary by NARA. 6. Batticaloa Lighthouse

This historic lighthouse isn’t open, yet you can see it as it puts up as one of the extraordinary places to visit in Batticaloa to capture some beautiful pictures. You can take a boat trip around the inlet to have an incredible perspective of this lighthouse.

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7. St Mary’s Cathedral

One of the famous historical places to visit in Batticaloa among local Catholics. It is located in the middle of the town which is a very calm place, people can reach here in a really short time. This catholic church is more than 200 years old with unique architecture and built in blue color. Not like a church as you would view in Europe, though it is precisely a ‘Sri Lankan’ styled church. 8. Unnichchai Tank

Visitors can take a short ride over the countryside on the rented bicycles to reach Unnichchai tank. The route goes towards the lagoon from Batticaloa. The view en-route will be charming with a low forest extended over the lagoon. Unnichchai Tank is a classic area. A huge tank that waters most of the valley. The concrete structure of Unnichchai tank controls the waters of Unnichchai. The concrete work copies the stonework of ancients who planned and built this enormous tank.

Batticaloa houses many temples rich in cultural magnificence. Out of the several Hindu temples, 11 | P a g e

the Anipandi Sitivigniswara Alayar temple is visually exquisite, with a beautiful gopuram (gateway tower) that are furnished with a tumultuous celebration of intertwined god sculptures. Another famous temple is Thiruchendur Murugan Alayam, built-in 1984. The Murugan image of the temple is supposed to have opened its own eyes before done by the painter. The tsunami slammed its small gopuram sinking at a startling angle. 10. Kattankudy Heritage Museum

This exceptional new museum rushes deep into the history of Arab and Muslim traders provincially. Spread across three-storeys, it reveals a compelling tale about centuries of culture through displays, artifacts, models, recreations, etc. The English-speaking staff here will happily guide you around.

Project Benefits Promoting Tourism Bordered by the Batticoloa, Pasikudah beach of the finest beaches of the country and attracts a sea of tourists every year. While places such as Nilawali and Arugambe are already flowing with tourism activity, one of the finest beaches of the nation still awaits its turn to be amongst the foremost tourist destinations. With a vision to introduce Palm Beach Resort as a popular tourist destination, the Palm beach resort aims to provide a number of entertainment activities for tourists that are exciting, unique and at par with the best holiday destinations in the world. From water skiing, jet skiing, Para sailing, beach sports, luxurious beach side tents, to gourmet restaurants with global delicacies. The project’s grand vision of entertainment, coupled with country’s inherent historical significance makes it a unique mix for an ideal tourist destination. 12 | P a g e

Boost to Local Markets With thriving tourism we also aim to boost the local industries. Skilled craftsmen will be able to showcase their handicraft to the growing number of tourists giving the overall local markets a tremendous opportunity to flourish. The result will be in the form of much needed revenue to the people and the state.

Employment Generation The project also aims to create long term employment for the people of Batticoloa and its surrounding areas. The result of mass employment will mark a substantial growth in their standard of living. Staffing extensively will also ensure quality of service and maintain the cleanliness of the surroundings. A proposed target of employing at least 260 people is aimed for the first year of the project.

Bollywood Bonus With fun, adventure and outstanding facilities, we will also bring the dazzle of Bollywood to Palm Beach Resort. It will benefit to one Director’s having contact with the Bollywood. The resort boasts of its natural landscape and modern convenience and will be an ideal shoot location for Bollywood movies, shows and songs, Bringing star quotient to an already entertainment packed resort will further help in boosting tourism and visitor traffic to Palm Beach Resort .

Environmental Measures Palm Beach Resort landscape is naturally forested and preserving its natural integrity is our prime focus. To keep the sanctity of natural habitat intact, we have devised strategies to ensure protection of marine ecology, conservation of forests and environmental protection. If at all a tree is cut, a new one will be planted. We aim to enhance the natural surroundings without disturbing the ecological equilibrium of the area.

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Objectives of the Project Promote professional growth and development opportunities Provide a boost to the existing Tourism industry in Sri Lanka Increase overall revenue generation amongst local community and thus the overall economy of the country Construct environment friendly structures, avoiding permanent construction yet offering a world class ambience and comforts Invest in the country heritage showcasing a fusion of cultural and Wonder of Asia attract foreign and domestic tourists First time in Sri Lanka promote as Leisure Village

Design Objectives of Whole Building Design Energy efficiency

Proposed buildings would include measures to reduce energy consumption, buildings built primarily with natural material will have a lower embodied energy than those built primarily with brick, concrete, or steel. Materials efficiency

Building materials typically considered to be 'green' include natural material, rapidly renewable plant materials like bamboo and straw, dimension stone, recycled stone, recycled metal and other products that are non-toxic, reusable, renewable, and/or recyclable. Operations and maintenance optimization

No matter how sustainable a building may have been in its design and construction, it can only remain so if it is operated responsibly and maintained properly. Ensuring operations and maintenance (O&M) personnel are part of the project's planning and development process will help retain the green criteria designed at the onset of the project. Waste reduction

Eco friendly construction also seeks to reduce waste of energy, water and materials used during construction. Well-designed buildings also help reduce the amount of waste generated by the occupants as well, by providing on-site solutions such as compost bins to reduce matter going to landfills. 14 | P a g e

Proposed activities of the Project International Standard Resort A structure was designed to simulate a modern-style villa, with ocean view galleries. Distinctive fountains, pools and landscaping accentuate the lush green garden environment. The conference center, entrance and lobby. The resort provides dramatic ocean views from guestrooms, suites and meeting areas. AMENITIES Full-service spa; retail-shopping plaza; meeting and banquet areas including ocean view ballroom; conference center; ocean view courtyard; direct beach access via connected pedestrian bridge; elegant restaurants; multi-specialty restaurant

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Luxurious Beach Side Villa Tents The Beach Villas are individual villas hidden within the abundant vegetation, yet only a few steps away from the beach. These villas face the lagoon side of the island and feature king- sized four-poster beds, expansive wooden decks at the front with

daybed and sunloungers. The Beach Villas also include semi-open air bathrooms with outdoor rainfall shower.

Water Villas These magnificent villas are also built on stilts and sit directly over the lagoon, close to the house reef with its colorful myriad of marine life. The villa features an airy bedroom with king bed and a spacious bathroom with twin vanities and rainfall shower. The villas also include an oversized two-tiered sundeck with your jacuzzi, sunloungers and sun umbrella. The wooden deck outside faces the aquamarine lagoon and lets you step directly into the crystal clear waters. How much closer to the water can you be?Enjoy panoramic views of the Arabian Sea with a bubbly drink in hand, and your favourite tunes playing the background. 16 | P a g e

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Water Villas Construction 18 | P a g e

Amusement Park Amusement & Water Park having numerous thrilling amusement and water waves and slides accompanied with lush green lawns would be the part of project. Situated in a scenic land with exclusive Rides, which brings the world of fun & thrill. Water

Park w in which always lies the never-ending fun & masti.

Lush green Landscape Take in the fragrance of a life that is away from the cacophony of a busy city life. Spend your evenings taking a leisurely walk in the beautifully landscaped parks. Spend quality time with your dear ones in the gardens or choose to be with yourself by the sea side.

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Water Sports You can enjoy a wide variety of water sports and beach activities. The water temperatures are 26-30 degree all year round. Its true paradise for all type of water activities. Water Sports Centre can provide you with a whole range of activities like Sailing, Wind Surfing, Water Skiing, Jet Skiing, Snorkelling, Para Sailing etc,

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Beach Sports & Activities A brunch of beach sport activities including volley, speed Minton, beach tennis and swimming.

Multi Cuisine Restaurant A feast for your eyes, soul and taste buds, the restaurant would offer you inspired culinary creations to be enjoyed with tempting flavors and enchanting aromas that melt into delectable cuisines in our dining choice, set amidst inspiring setting and surrounding Grand and impressive is specially designed to stir the senses with international flair and to entice your palates. The restaurant offers a truly distinctive atmosphere, perfect for any occasion. Palate includes flavours from traditional East and north Sri Lankan to across the Chinese, Europe, Indonesian and Italian etc. Enjoy the Luxuries here.

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Craft Area A shopper’s delight, the resort’s beguiling bazaars sell a wide variety of world renowned Ceylon handicrafts.

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2. Product Description and Application Modern hotels and restaurants are facilities where food, drinks, bed rooms and other services are provided in an efficient, cordial and pleasant manner and style. Operating hotel and restaurant businesses, especially at tourist sites, require cleanliness and neatness of services to be provided and efficiency, cordiality and good manner on the part of hotel and restaurant workers.

3. Market Study, Plant Capacity and Production Program 3.1

Market Study 3.1.1 Present Demand and Supply

The Eastern Region encompasses the major tourist attraction centers of the country. The major ones are Pasicuda & Kallady Beach, Batticoloa Fort, Kallady Bridge and Batticoloa Light House. These tourist attraction sites are registered under Ceylon tourist Board. Pasikudah Beach is one of the most Beach of attraction for both domestic and local tourists which is visited almost every day throughout the year. Thousands of tourists visit the Beach every year.

3.1.2 Projected Demand Tourism industry is one of the potential sectors of the country to generate foreign currency. Its contribution towards export and GDP growth is increasing. For example in 2017 Number of International Tourists to Sri Lanka 2,116,407 and tourism has contributed USD 3,925 million and 4.5% to the GDP growth. As indicated in table 1 bellow, the number of tourists arriving in Sri Lanka and receipts from international inbound tourism is increasing from year to year.

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3.1.3 Pricing and Distribution Pricing of a hotel and restaurant services could be classified into three main categories i.e. food, beverage and bed rent. In this regard the daily average price by category of service is given in table 2 bellow. Type of food to be prepared at this site is more of any country culture. Table 2 Type of Service Food Beverage Bed Rent

3.2

Production Program

The service program of the proposed hotel and restaurant is assumed to start at 80% in the first year and increases by 10% until 100% is reached in the second year.

4. Raw Materials and Utilities 4.1

Availability and Source of Raw materials

Required raw materials for hotel and restaurant service include food items, beverages (hot and cold), room clothing, detergents and the likes. All raw materials are available in the domestic market.

4.2

Annual Requirement and Cost of Raw Materials and Utilities

The cost of annual requirement of raw materials of the project is estimated as percentage of the respective service revenue as indicated in table 4 bellow.

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Table 4 Cost of raw materials as percentage of Revenue Service

Percentage

Food

40

Beverages

60

Bed rent

10

5. Location and Site The location of the proposed project is at Baticoloa Pasicudah Beach.

6. Technology and Engineering 6.1

Production Process

The main processes of establishing modern hotels and restaurants include studying the market, securing land, constructing buildings, equipping and furnishing the buildings and starting the operations of the businesses.

6.2

Machinery and Equipment

Machinery and equipment required for a Palm Beach Resort could broadly be classified into four categories. These are; 

Bed room furniture,(includes beds, mattress, blankets, bed sheets, tables, chairs, cap boards, etc)



Hotel furniture and equipments (tables ,chairs, glasses etc)

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Restaurant furniture and equipments ( tables, chairs, refrigerator, glasses, etc)

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Kitchen utensils ( forks, spoons, trays, dish, deep freezer, etc)

6.3

Civil Engineering Cost

A Hotel and Restaurant at Baticoloa will require about 100 acre of land, of which 3 acre is for 26 | P a g e

the construction of main building and 10 acre is for 100 self contend bed rooms and 10 acre for amusement park. Assuming that the hotel and restaurant will be made from traditional materials, the investment cost for 250 bed rooms is about Rs 32,085 million inluding hotel and restaurant. The plant will require additional Rs 500 million for land preparation and park decoration with lush green landscaping.

7. Human Resource and Training Requirement 7.1

Human Resource

The project will require about 260 employees as indicated in table 6 bellow with annual salary of Rs 189 million.

1.1

Human Resource

Post

Amount

Salary

Total Salary

p.m.

1st Year

Hotel Staff CEO

1

750,000

9,000,000

General Manager

1

450,000

5,400,000

Manager

4

250,000

12,000,000

Financial Controller

1

250,000

3,000,000

15

100,000

18,000,000

5

65,000

3,900,000

Room Boys

85

50,000

51,000,000

Garden / Room Cleaners

15

50,000

9,000,000

Amusement Park Staff

10

65,000

7,800,000

5

65,000

3,900,000

Supervisor Sales Assistant

Water Sports Staff

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Beach Sport Activities Staff

5

65,000

3,900,000

Stuarts

25

50,000

15,000,000

Kitchen Staff

20

75,000

18,000,000

Security Guards

20

15,000

3,600,000

Labours

20

40,000

9,600,000

Drivers

10

60,000

7,200,000

5

30,000

1,800,000

Driver / Helper

247

182,100,000

Office Staff Store Keeper

2

75,000

1,800,000

Accounts Assistant

4

50,000

2,400,000

Receptionist

3

45,000

135,000

Cashiers

4

65,000

3,120,000

TOTAL

1.2

13

7,455,000

260

189,555,000

Training Requirement

For Hotel and Restaurant services trained manpower is available in the market

2. Financial Analysis 2.1

Underlying Assumption

The financial analysis of hotel sector is based on the data provided in the preceding chapters and the following assumptions.

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A. Construction and Finance Construction period

2 year

Source of finance

12% equity and 88% loan

Tax holidays

2 years

Bank interest rate

7.5%

Discount for cash flow

10%

Value of land

Based on bank valuation

Spare Parts, Repair & Maintenance

3% of fixed investment

B. Depreciation Building

5%

Machinery and equipment

10%

Office furniture

10%

Vehicles

20%

Pre-production (amortization)

20%

C. Working Capital (Minimum Days of Coverage)

Raw Material-Local

30 days

Raw Material-Foreign

120 days

Factory Supplies in Stock

30 days

Spare Parts in Stock and Maintenance

30 days

Work in Progress Finished Products Accounts Receivable Cash in Hand Accounts Payable

10 days 15 days 30 days 30 days 30 days

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2.2

Investment

The total investment cost of the project including working capital is estimated at Rs 48,541 million as shown in table 7 below. The Shareholders shall contribute 22% of the finance in the form of equity while the remaining 78% is to be financed by way of commercial loan. Table 7: Total initial investment Rs. MILLION ITEMS

NOTES

LAND FOR HOTEL LAND DEVELOPMENT & LUSH GRENN LANDSCAPING BUILDING CONSTRUCTION

01

AMUSEMENT PARK

LOAN

EQUITY

TOTAL

-

10,500

10,500

500

-

500 -

32,085

-

32,085

2,500

2,500

WATER SPORT

250

250

BEACH SPORT AREA GARDE N

150

150

75

75

AIR CONDITIONERS

02

SWIMMING POOL

34

-

34

500

-

500

KITCHEN EQUIPMENTS

20

20

OVERHEAD WATER TANK

15

15

GYM EQUIPMENT

15

-

15

45

-

45

150

-

150

25

-

25 -

SPORTS BOATS FLOATING RESTAURANT ELECTRICITY CONNECTION & ELECTRICAL FITTINGS GENERATOR

06

-

50 FIRE PROTECTION SYSTEM SECURITY BOUNDRY WALL & GATE

50

10

-

10

500

-

500

FURNITURE & FITTINGS

03

230

-

230

EQUIPMENTS

04

15

-

15

50

-

50

OFFICE EQUIPMENTS & BOAR ROOM MOTOR VEHICLES WORKING CAPITAL & OTHER CONTINGENCIES & PRE OPERATIONAL EXPENSES

TOTAL PROJECT COST

05

62

62

750

-

750

10

-

10

38,041

10,500

48,541

*Pre-production capital expenditure includes - all expenses for pre-investment studies, consultancy fee during construction and expenses for company‘s establishment, project administration expenses, commission expenses, preproduction marketing and interest expenses during construction.

2.3

Financial Evaluation I.

Profitability

The financial projections made reveal that the project is economically viable and social desirable. According to the income statement of the plant the project will generate profit beginning from first year operation. Important ratios such as the percentage of net profit to equity (return on equity) and net profit and interest on total investment (return on total investment) are 34.7%. II.

Breakeven Analysis

The break even point of the project is estimated by using income statement projection. The plant breaks evens at 25.7% of capacity utilization.

III.

Payback Period

The Initial investment of the project will be recovered before the end of the fifteenth year operation

IV.

Simple Rate of Return

It is a ratio of net profit and interest to total capital invested for a single year at full capacity utilization. V.

Internal Rate of Return and Net Present Value

Base on the cash fallow statement, the project is anticipated to have a net present value given when discounted at 12% discounting factor where as its IRR is 25.6%.

VI.

Sensitivity Analysis

An increase in costs of raw materials by 10% will not affect the profitability of the project.

3. Economic and Social Benefit and Justification Based on the foregoing presentation and analysis, we can learn that the proposed Hotel project possesses wide range of benefits that complement the financial feasibility obtained earlier. In general the envisaged project promotes the socio-economic goals and objectives stated in the strategic plan of the Investor as well as promote tourisms of the country. These benefits are listed as follows A. Profit Generation The project is found to be financially viable and earns on average a profit of Rs 3,600 million per year and Rs 21,675 million within the six years of the project life. Such result induces the project promoters to reinvest the profit which, therefore, increases the investment magnitude in the region. B. Tax Revenue In the project life under consideration, the Government will collect about Rs 2,956 million for six years from corporate tax payment alone (i.e. excluding NBT and VAT). Such result create additional fund for the Sri Lanka government that will be used in expanding social and other basic services in the region

C. Employment and Income Generation The proposed project is expected to create employment opportunity to 260 citizens of the country. This would be one of the commendable accomplishments of the project. D. Pro-Environment Project The proposed production process is environment friendly.