Management of a Tourist Village Establishment in Mountainous Area through Analysis of Costs and Incomes
Abstract
:1. Introduction
2. Literature Review
- animal husbandry. European mountain areas are representative through some aspects: about 25% of cattle production, 29% of dairy cows, 32% of sheep and 67%;
- and forestry.
- improvement of general infrastructure on which the revitalizing of the rural economy depends (roads, water network, sewerage, telecommunication, electricity);
- arranging some farms, pensions, and model tourist households, as well as equipment and organization of activity, but with the compliance with the local traditions and architecture, avoiding the kitsch, or transfer of urban construction into the rural areas;
- identification, inventory and capitalization of tourist and surrounding resources; development and modernization of those placed in the tourist circuit with particular emphasis on entertainment, animation, recreation and sport practicing; and
- drawing up a register of the main events in the life of the village (cultural, religious, traditions, exhibitions, fairs, etc.), memorials, local artisans and rhapsodies, in order to present some authentic tourist and of definite value programs (personalized to the area).
3. Materials and Methods
- (1)
- wonderful natural landscape (mountains, forests, clean air, rivers and lakes) and also wildness (the influence of human factor is as visible as in other developed tourist mountain areas);
- (2)
- well preserved ancestral traditions and crafts; and
- (3)
- the interweaving of the traditional with the modern and new: cultural-ethnographic archeology, architectural treasure, or the opportunity to practice skiing, golf and extreme sports.
- 12 hotels, classified with one-three stars;
- 20 villas, categorized by one-four stars;
- 6 motels with one and two stars;
- 16 cottages, classified in the category one-three stars;
- 3 holiday villages located in: Boga, Fantanele, Vartop.
- (1)
- when the investment is fully supported by the investor‘s own sources; and
- (2)
- when it is supported by investor through a loan.
4. Results and Discussions
4.1. Description of A Possible Holiday Village
- (1)
- Accommodation will be made in 10 rural houses, meaning 20 rooms and 40 places. These houses have a wood and brick structure with two rooms on board, one downstairs, one upstairs and one bathroom for both rooms. All rooms are for two persons, thus results an accommodation capacity of four persons in one house. Each board is provided with a terrace. The built surface on a rural house will be of 80 m2. The total accommodation area will be of 800 m2. The constructive structure will be based on sandwich panel’s type, with sloping wooden shingle roofing (shingle).
- (2)
- Access roads (paved), pedestrian paths (dales), green areas, and transparent fencing with climbing vegetation are designed.
- (3)
- The playground is designed for volleyball and basketball. It will be considered the land to be properly oriented with the long side on the North-South, with a maximum deviation of 15°.
- (4)
- Parking will serve the main building, occupying an area of 55 m2. The capacity would be 10 cars. The access to the parking place will be on the main promenade road.
- (5)
- Green area corresponding to the center will have a surface of 0.35 hectares and will be located mostly around the main building, with landscape design, the floral plantings, plantations aimed at visual protection.
- (1)
- Feasibility study;
- (2)
- Technical project planning and related equipment of the village;
- (3)
- Business plan that includes steps clarify the stages and activities, obtaining of operating permits, and implementation of marketing strategy;
- (4)
- Village tourism project; and
- (5)
- Execution of the project and opening of the tourist village.
- (1)
- Diversifying the accommodation sector (medium and small hotels, holiday villages, campsites, hostels, and villas);
- (2)
- Use of the existing natural and human resources;
- (3)
- Development of activities with local, regional and international character and level;
- (4)
- Participation in regional and international associations in the field;
- (5)
- Stimulate local entrepreneurship;
- (6)
- Involve other owners of rural houses in the area in the development of joint tourism programs; and
- (7)
- Marketing of local cuisine.
4.2. The Investment Size
4.3. Annual Income Generated by the Holiday Village on Higher Occupancy Degree and Period of Investment Amortization
- Number of rooms: 20
- Optimal price per room: 12.17 EUR
- a. The total investment (excluding loans) S0 = 465,310 Eurob. The total investment, subsidized 50% case, S0/50 =232,655 Euro
- a. The amount necessary to be returned after a 10-year loan, advance 50%, 7% interest, S1 = 690,322.6 Eurob. The amount necessary to be returned after a 10-year loan, advance 50%, 7% interest, subsidized 50%, S1/50 = 345,161.3 Euro
- a. The amount necessary to be returned after a 10-year loan, advance 0%, 7% interest, S2 = 915,335.17 Eurob. The amount necessary to be returned after a 10-year loan, advance 0%, 7% interest, subsidized 50%, S2/50 = 457,667.5 Euroc. The amount necessary to be returned after a 10-year loan, advance 0%, 7% interest, subsidized 70%, S2/70 = 274,600.5 Euro
- working with tourist operators to increase the number of “sold” rooms;
- increase the number of visitors;
- attracting people who need temporary accommodation for longer periods; and
- partnership with other rural houses to attract tourists.
5. Conclusions
Acknowledgments
Author Contributions
Conflicts of Interest
References
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Objective | Detailed Actions for Proposed Objective | Units No. | Cost/Unit (Euro) | Total Cost (Euro) |
---|---|---|---|---|
Operating permits | Making a feasibility study | 41,390 | ||
Registration costs at different institutions | 950 | 950 | ||
Business Licenses | 570 | 570 | ||
Personal training | Studies for staff training, no. people | 5 | 475 | 2375 |
Obtaining the patent for tourism, no. of people | 5 | 475 | 2375 | |
Consulting expenses | 3650 | 3650 | ||
Territory planning | Repairing roads, (m2) | 500 | 9.5 | 4750 |
Own water and sewerage network | 4750 | 4750 | ||
Street and common use areas lighting | 50 | 23.75 | 1185.5 | |
Create spaces for storage of waste, (units) | 1 | 475 | 475 | |
Installation of trash cans, (units) | 25 | 9.5 | 237.5 | |
Installation of public telephones (units) | 3 | 237.5 | 712.5 | |
Making a personal parking, (m2) | 55 | 9.5 | 522.5 | |
Purchase sets fire | 6 | 95 | 570 | |
Creating green lawn and land (areas) | 35 | 38 | 1330 | |
Arranging space for administration | Front and reception hall, (m2) | 25 | 312.5 | 7812.5 |
Space to store the equipment for hire, (m2) | 10 | 190 | 1900 | |
Warehouse for storing linen and maintenance materials, (m2) | 10 | 190 | 1900 | |
First aid point, (m2) | 15 | 427.5 | 6412.5 | |
Accommodation building and equipment | 10 pensions of 80 m2 each. Each pension is equipped with 2 rooms, 2 beds, four beds room/board (m2) | 800 | 380 | 304,000 |
Mattresses, number | 40 + 40 | 190 | 15,200 | |
Bedding sets | 80 | 28.5 | 2280 | |
Furniture sets | 20 | 285 | 5700 | |
Accessories (TV), units | 20 | 285 | 5700 | |
Bathroom equipment (1 bathroom on each board) | Shower sets | 10 | 285 | 2850 |
WC, sets | 10 | 76 | 760 | |
Sink, sets | 10 | 28.5 | 285 | |
Accessories, sets | 10 | 28.5 | 285 | |
Kitchen building and equipment | Electric and wood stove, units | 3 | 237.5 | 712.5 |
Refrigerator, units | 3 | 427.5 | 1282.5 | |
Cookware and kitchenware | 1425 | 1425 | ||
Recreation | Creation of commercial premises, (m2) | 30 | 312.5 | 9375 |
Construction of a sports field | 1 | 475 | 475 | |
Planning a pool | 1 | 1900 | 1900 | |
Sauna | 1 | 4750 | 4750 | |
Bar, (m2) | 30 | 332.5 | 9975 | |
Marketing actions | Making a holiday village scheme panel at the entry in common | 1 | 95 | 95 |
Plaque representing the tourist category | 1 | 95 | 95 | |
Village scheme leaflets and products offered | 500 | 0.095 | 47.5 | |
Web page development (within which, the purchase costs of 3 computers and costs of site creation) | 14,250 | |||
TOTAL | 465,310.5 |
A1 | A2 | A3 | A4 | A1 | A2 | A3 | A4 |
---|---|---|---|---|---|---|---|
Occupancy Degree (%) | Annual Income (Euro) | Amortization Period (years) | Income Capitalized in 10 Years (Euro) | Occupancy Degree (%) | Annual Income (Euro) | Amortization Period (years) | Income Capitalized in 10 years (Euro) |
1 | - | - | - | 35 | 28,658.55 | 16 | 378,487.5 |
2 | - | - | - | … | ... | … | … |
3 | 229.43 | 2027 | 3030.033 | 40 | 33,100.6 | 14 | 437,152.6 |
4 | 1117.84 | 416 | 14,763.07 | … | ... | … | … |
5 | 2006.25 | 231 | 26,496.12 | 45 | 37,542.65 | 13 | 495,817.8 |
… | ... | … | … | 46 | 38,431.06 | 12 | 507,550.8 |
10 | 6448.3 | 75 | 85,161.33 | 47 | 39,319.47 | 12 | 519,283.9 |
… | ... | … | … | 48 | 40,207.88 | 11 | 531,016.9 |
15 | 10,890.35 | 42 | 143,826.5 | 49 | 41,096.29 | 11 | 542,750 |
… | ... | … | … | 50 | 41,984.7 | 11 | 554,483 |
20 | 15,332.4 | 30 | 202,491.7 | … | ... | … | … |
21 | 16,220.81 | 28 | 214,224.8 | 65 | 55,310.85 | 8 | 730,478.6 |
22 | 17,109.22 | 27 | 225,957.8 | … | ... | … | … |
23 | 17,997.63 | 25 | 237,690.9 | 70 | 59,752.9 | 7 | 789,143.8 |
24 | 18,886.04 | 24 | 249,423.9 | … | ... | … | … |
25 | 19,774.45 | 23 | 261,157 | 80 | 68,637 | 6 | 906,474,3 |
26 | 20,662.86 | 22 | 272,890 | … | ... | … | … |
27 | 21,551.27 | 21 | 284,623 | 85 | 73,079.05 | 6 | 965,139.5 |
28 | 22,439.68 | 21 | 296,356.1 | … | ... | … | … |
29 | 23,328.09 | 20 | 308,089.1 | 90 | 77,521.1 | 6 | 1023,805 |
30 | 24,216.5 | 19 | 319,822.2 | … | ... | … | … |
… | ... | … | … | 100 | 86,405.2 | 5 | 1141,135 |
Investment Type | Minimum Occupancy Degree for Useful Amortization |
---|---|
I a | 43% |
I b | 23% |
II a | 62% |
II b | 33% |
III a | 81% |
III b | 42% |
III c | 27% |
Country/Occupancy Degree (%) | 2012 | 2013 | 2014 |
---|---|---|---|
Bulgaria | 16.3 % | 16.6 % | 16.5 % |
Czech Republic | 22.1 % | 22.1 % | 21.3 % |
Greece | 21.9 % | 23.3 % | 24.4 % |
Poland | 32.3 % | 32.8 % | 33.9 % |
Romania | 29.1 % | 27.3 % | 26.8 % |
Average values | 24.34 % | 24.42 % | 24.58 % |
2012 | 2013 | 2014 |
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Ciolac, R.; Rujescu, C.; Constantinescu, S.; Adamov, T.; Dragoi, M.C.; Lile, R. Management of a Tourist Village Establishment in Mountainous Area through Analysis of Costs and Incomes. Sustainability 2017, 9, 875. https://doi.org/10.3390/su9060875
Ciolac R, Rujescu C, Constantinescu S, Adamov T, Dragoi MC, Lile R. Management of a Tourist Village Establishment in Mountainous Area through Analysis of Costs and Incomes. Sustainability. 2017; 9(6):875. https://doi.org/10.3390/su9060875
Chicago/Turabian StyleCiolac, Ramona, Ciprian Rujescu, Simona Constantinescu, Tabita Adamov, Mihaela Cristina Dragoi, and Ramona Lile. 2017. "Management of a Tourist Village Establishment in Mountainous Area through Analysis of Costs and Incomes" Sustainability 9, no. 6: 875. https://doi.org/10.3390/su9060875