Integrating Business Skills into Ecotourism Operations ... - IUCN

PARTICIPANT
GUIDE
Integrating
Business Skills
into
Ecotourism
Operations
14 4 - 818 UNE OCTOBER 1
SRI LAO LANKA PDR

Organized by:
International Union for Conservation of Nature
IUCN, International Union for Conservation of Nature, helps the world find pragmatic solutions to our most pressing
environment and development challenges. IUCN works on biodiversity, climate change, energy, human livelihoods and
greening the world economy by supporting scientific research, managing field projects all over the world, and bringing
governments, NGOs, the UN and companies together to develop policy, laws and best practice. IUCN is the world’s
oldest and largest global environmental organization, with more than 1,200 government and NGO members and almost
11,000 volunteer experts in some 160 countries. IUCN’s work is supported by over 1,000 staff in 45 offices and hundreds
of partners in public, NGO and private sectors around the world.
Kuoni Travel Ltd.
Kuoni’s head office is located in Zurich, Switzerland, where Alfred Kuoni founded the company in 1906. Over the years
Kuoni has developed into today’s global travel services company, now employing around 12 000 people in more than 60
countries. In its European source markets the company has more than 160 of its own retail outlets and tour operating
offices. Its global destination travel services business has several different types of office: sales offices in the source
markets, particularly in Asia for group travel business; agency offices that look after guests at the destinations; offices
dedicated to buying in and selling online-based destination services; and offices specialising in MICE business (meetings,
incentives, conferences and events). Visa services provider VFS Global (external consular services) runs a worldwide
business through more than 500 offices spread across every continent. Overall, counting all business activities, Kuoni has
more than 700 offices in 62 countries around the world. Kuoni has been committed to a sustainable development of the
tourism industry for many years and strives to act as a good corporate citizen which takes into full account the current
and future economic, social and environmental impacts of its business.
Whittall Boustead (Travel) Ltd.
Whittall Boustead (Travel) Limited exclusively represents Kuoni International and has been the strategic partner of Kuoni
since 1993. Being the local Agent for Kuoni UK, Kuoni France & Kuoni Switzerland among others since November 1993, it
is one of the two destination management companies owned by Sri Lanka’s largest conglomerate, John Keells Holdings.
Whittall Boustead (Travel) Limited is a top destination Management company in Sri Lanka which specializes in handling
cultural tours, adventure, Nature & Wildlife tours, Beach holidays, Weddings & Honeymoons, Sports tours and tailor
made tours to suit the travellers’ requirements. Whittall Boustead (Travel) Limited is also an ISO 9001 and 14001
certified company. They take part in various community activities, the foremost which is named the ‘Siduhath Sisu Udana
project’ which was initiated 12 years ago, in order to enrich the facilities of a school in Ratnapura that was in dire need of
assistance; and at present the school has increased its population from approximately 100 to more than 200 students.
About this Training Workshop:
Project coordination, implementation and logistics:
Maria Ana Borges, IUCN Global Business and Biodiversity Programme (overall coordination)
Shamen Vidanage and Naalin Perera, IUCN Sri Lanka
Stephanie Ossenbach-Keller, Kuoni Travel Ltd.
Nalika Abeysuriya and Marini Nakandala, Whittall Boustead (Travel) Limited
Instructors:
Ajith De Silva, Ministry of Environment and Renewable Energy; Hiran Cooray, Jetwing Hotels; Srilal Miththapala, Ceylon
Chamber of Commerce; Tilak Gunawardana, Aitken Spence Hotels; Jayantissa Kehelpannala, John Keells Group; Shirley
Fisher, Kuoni UK; Sunil Dissanayake, The Kingsbury Hotel; Chitral Jayatilake, John Keells Hotels; Anuruddha Bandara,
Beyond Boundaries Global Pvt Ltd.
With funding support from Kuoni Travel Holding Ltd.
The designation of geographical entities in this book, and the presentation of the material, do not imply the expression of any
opinion whatsoever on the part of IUCN concerning the legal status of any country, territory, or area, or of its authorities, or
concerning the delimitation of its frontiers or boundaries. The views expressed in this publication do not necessarily reflect those
of IUCN.

Table of Contents
Contents
Page
Agenda ....................................................................... 2
About the Instructors ....................................................................... 6
Exploring the Ecotourism Potential ....................................................................... 11
Business Planning Exercise ....................................................................... 12
My ecotourism business ....................................................................... 13
Ideas to add to my business ....................................................................... 14
Integrating Health & Safety, Human Resources
and Sustainable Operations ....................................................................... 15
Marketing and Sales – SWOT Analysis ....................................................................... 16
Learning from the site visit ....................................................................... 17
Contacts ....................................................................... 18
Notes ....................................................................... 19
Annex I – Business Planning Exercise Solutions
1

Agenda
Arrival – 14 October 2013
Time Event Content Instructor
Arrival at hotel and check-in
18:30 Welcome & registration
19:30 Group dinner at hotel
Day 1 – 15 October 2013
Time Event Content
07:00 Breakfast
08:30 Session 1 • Welcome & context setting – Why is
Opening and Ecotourism important in the region from a
Context Setting conservation perspective? Shamen
Vidanage, IUCN Acting Country
Representative Sri Lanka
• The big picture: business skills for
ecotourism project. Stephanie Ossenbach-
Keller, Kuoni Group and Nalika
Abeysuriya, Whittall Boustead Travel
• Aims of the workshop, methodology and
the team. Maria Ana Borges, IUCN
• Participant introductions
09:30 Session 2
Making the
most of your
market context
Textbook Pg 13
10:30 Coffee Break
11:00 Session 3
Exploring the
Ecotourism
Potential
Textbook Pg 13
• The conservation context: what are the
natural assets of the region? Ajith De Silva,
Ministry of Environment and Renewable
Energy
• Tourism in Sri Lanka: A business
perspective Hiran Cooray, Jetwing Hotels
• Discussion and Q&A
• What makes a good ecotourism product?
Srilal Miththapala, Ceylon Chamber of
Commerce
• Testimonials from Spirit and Eco-
Adventure Living Squad and Sri Lankan
Escapes
• Q&A
• Discussions in pairs: differentiating your
business
Instructor
Shamen
Vidanage, IUCN
Stephanie
Ossenbach-
Keller, Kuoni
Nalika
Abeysuriya,
Whittall
Maria Ana
Borges, IUCN
Ajith de Silva,
Ministry of
Environment
and Renewable
Energy
Hiran Cooray,
Jetwing Hotels
Srilal
Miththapala,
Ceylon Chamber
of Commerce
2

12:00 Lunch
13:00 Session 5
Business
Planning
Textbook Pg 25
15:30 Coffee Break
15:45 Session 4
Visualizing our
Ecotourism
Businesses
• What you need to know to create a business
and financial plan for an ecotourism
business. Tilak Gunawardana, Aitken
Spence Hotels and Jayantissa
Kehelpannala, John Keells Group
• Table discussions and Q&A
• Group work: pricing ecotourism products
• Creating Visual Maps: Participants prepare
visual map of their business.
• Using their maps, participants will present
their ecotourism business.Individual work:
• Actions
16:30 Reflections on
the day
16:45 End of Day 1 – Tour of Jetwing Lagoon Group 1
19:00 Dinner
• What did we learn and what do we look
forward to tomorrow?
Tilak
Gunawardana,
Aitken Spence
Hotels and
Jayantissa
Kehelpannala,
John Keells
Group
Day 2 – 16 October 2013
Time Event Content
07:00 Breakfast
08:30 Welcome to
day 2
• Introduction of the agenda for the day
08:45 Session 6
Integrating
Health &
Safety, Human
Resources and
Sustainable
Operations
Textbook Pg35,
59, 67
11:30 Coffee Break
12:00 Session 7
Marketing,
Sales &
Customer Care
12:45 Lunch
13:45 Session 7 cont’d
Marketing,
Sales &
Customer Care
• Presentation on H&S, Shirley Fisher,
Kuoni UK
• How to hire and retain the right staff. Sunil
Dissanayake, The Kingsbury Hotel
• Presentation on Sustainable Operations,
Chitral Jayatilake, John Keells Group
• Discussion and Q&A in small groups
• Report back from group discussions
• Individual work: participants will add
actions to their map.
• Marketing and Sales Presentation – Part 1.
Srilal Miththapala, Ceylon Chamber of
Commerce
• Marketing and Sales Presentation – Part 2.
Srilal Miththapala, Ceylon Chamber of
Commerce
• Q&A
3
Instructor
Shirley Fisher,
Kuoni UK
Sunil Dissanayake,
Kingsbury Hotel
Chitral Jayatilake,
John Keells Group
Srilal Miththapala,
Ceylon Chamber
of Commerce
As above

for your
ecotourism
business
Textbook Pg 47
15:30 Coffee Break
16:00 Session 7 cont’d
Marketing,
Sales &
Customer Care
16:45 Session 8
Application to
Our Business
Ideas
17:00 Reflections on
Day 2, Field
Trip Briefing
• Group work: Designing marketing products
for different promotion channels
• Presentations in plenary feedback from the
instructor and the rest of the group
• Presentation on Customer Care.
Anuruddha Bandara, Beyond
Boundaries Global Pvt Ltd.
• Q&A
• Individual work: participants will add
actions to their map.
• Based on presentations and discussions
participants add “actions” to their map
• Discussion
• Short reflection on Day 2
• Programme for field visit (day 3 & 4)
• Closing of classroom part of workshop
17:00 End of Day 2 - Tour of Jetwing Lagoon Group 2
19:00 Dinner
Anuruddha
Bandara, Beyond
Boundaries Global
Day 3 – 17 October 2013
Time Event Content
Facilitator/
Chair
05:00 Check-out of hotel with packed breakfast
05:30 Departure – 2.5 hour bus ride to Kalpitiya
08:00 Boat trip to Bar
reef
• Visit in locally operated boats
12:30 Lunch at CCD visitor centre and discussion with representative from Semuthu Fisheries Society
13:45 Visit to home • Visit to facilities and discussion with home
stay
stay provider
17:00 Departure for Chilaw SLSFF
18:30 Arrival and check in at SLSFF
Day 4 – 18 October 2013
Time Event Content
07:00 Breakfast
07:00 Boat trip around Chilaw Lagoon and discussion with SLSFF representative
10:00 Session 10: • Overview of the agenda for Day 4
Learning from • Carrousel Activity: Three stations – one for
the Site Visit each of the three sites. Exploring the
following questions:
1. How are they developing the
4
Facilitator/
Chair

10:45 Session 11
Next steps –
What’s your
vision?
11:30 Final
reflections &
closing
12:00 Lunch and feedback for workshop organisers
13:00 Departure for Colombo.
Notes:
ecotourism potential of the site?
2. How are they ensuring sustainability?
3. What are the key health and safety
issues? How are they managing them?
4. What are the key human resources
issues?
5. How is the site being promoted?
• Reporting in small groups
• Recap of 3 phases – what is expected for the
3 rd phase, Maria Ana Borges
• Business-to-business feedback –
Whittall/Kuoni
• Next steps: Brainstorming on most effective
way of keeping in contact and ensuring
follow up in country groups
• Group exercise: What did you learn?
• Closing ceremony: Closing remarks,
organizers to give out certificates & group
photo
5

About the Instructors
Ajith De Silva
Ajith Silva is currently the Director in charge of the Policy and Planning
Division of Ministry of Environment and Renewable Energy, Sri Lanka. He
holds a M.Sc in the field of Natural Resources Management and a PG
Diploma in the field of Wildlife Ecology and Management and BSc in
Agriculture from the University of Peradeniya, Sri Lanka. He has wide
experience in private sector, wildlife, biodiversity and environmental
management. He serves in numerous national and regional steering
committees related to environmental management. Currently Ajith is the
Chair of the IUCN National Committee in Sri Lanka and the Chair of the
Mangroves for the Future (MFF) National Committee in Sri Lanka. He
also serves as a steering committee member of the Bay of Bengal Large
marine Ecosystem Project and a National Steering Committee Member
of the UNDP-GEF-SGP to name a few.
Hiran Cooray
Hailed as a respected professional in Sri Lankan tourism, Hiran Cooray
contributes an immense mixture of passion, honesty, integrity and
tenacity to the industry. Carrying on the legacy of his father, the late
Herbert Cooray, Hiran is the current Chairman of Jetwing - a family
owned company which counts a storied 40 year history. His
achievements are numerous and much acclaimed, being educated at the
prestigious St. Joseph’s in Colombo and going on to graduate from the
University of North Carolina and having followed a General Mangers
course at Cornell University. Hiran has represented Sri Lanka on the
Board of Directors of the Pacific Asia Travel Association (PATA) as well as
being the immediate past Chairman of the organization; Chairman of
PATA Sri Lanka Chapter and President of the Tourist Hotels Association
of Sri Lanka; and was recently appointed an Alternate Member of the
UNWTO – World Committee on Tourism Ethics. Today, Hiran sits on the
Boards of Small Luxury Hotels of the World (Asia Pacific region) and the
Sri Lanka Tourist Development Authority. In addition, he holds over 50
directorships in various hotels and related companies – making him a
much sought after speaker/panellist at tourism related international
forums.
6

Srilal Miththapala
Srilal Miththapala has over 25 years’ experience in the hospitality
industry. Having an Electrical Engineering degree, his early career was
with one of the largest manufacturing firms in Sri Lanka as Chief
Engineer. He was appointed in 1985, GM of Riverina Hotel, Sri Lanka’s
then, flagship 200 rooms, 4 star resort hotel, of the Confifi Group. In 1988
he was promoted to Director of Operations of the Group, responsible for
the 3 resort hotels, and also oversaw the development and construction
of the Groups’ new 5 star Eden Hotel. His responsibilities later expanded
to include marketing of the group’s 4 hotels. He then took on the mantle
of Director Business Development of the group in 1996, to spearhead the
diversification plans of the Confifi Group. In 1999 he moved to the
Serendib Group as CEO/Director, responsible for 3 public quoted popular
resort hotel companies. In 2009 he took over a more national role as
Director/ Consultant at Ceylon Chamber of Commerce, leading a EU
funded project on promoting Environmental Sustainability among SL
Hotels. He was President, Tourist Hotels Association of Sri Lanka 2008-10,
Board member of the Sri Lanka Hotel Classification Committee; Part time
consultant in tourism for World Bank, Washington D.C., and a member of
the Public Utilities Commission Consumer Consultative Committee. He is
a committed environmentalist, with special interest in wild life and
elephants. He has carried out research at the Uda Walawe National Park
of Sri Lanka on elephant population dynamics. He has published a book
on elephants entitled ‘Tranquil footsteps’ which traces the life of a herd
of elephants in the Uda Walawe National Park, as told through the eyes
of the matriarch elephant of the herd.
Jayantissa Kehelpannala
Executive Vice President – John Keells Holdings PLC and Head of
Maldivian Resorts, has over 30 years of experience in the leisure
industry both in hoteliering and inbound tourism. He is currently
Chairman of the Hotels & Tourism Employers Group of the Employers’
Federation of Ceylon and represents them at the EFC Council Meetings
and is a member of the Wages Board for the Hotel and Catering Trade. In
addition he is also the President of the Tourist Hotels Association of Sri
Lanka (THASL) and represents the Association at the Committee of
Ceylon Chamber of Commerce. He is a member of the Tourism Cluster of
NCED (National Council for Economic Development) under the purview of
the Ministry of Finance & Planning.
Tilak Gunawardana
Tilak Gunawardana is the Vice President Finance of Aitken Spence Hotels.
He has over two decades of experience in Auditing, Finance and General
management acquired in Sri Lanka and overseas. Prior to joining the
Group he worked in the senior management cadre of Ernst & Young and
thereafter served as Vice President at Amba Research Lanka (Pvt) Ltd. He
is an Associate Member of the Institute of Chartered Accountants of Sri
Lanka, the Society of Certified Management Accountants – Sri Lanka and
a member of the CPA – New Jersey. He is also a member of the Executive
Committee of the Tourist Hotels Association of Sri Lanka (THASL) and the
Head of its Fiscal & Monitory Affairs Sub Committee.
7

Shirley Fisher
Shirley Fisher has been working for Kuoni for over 30 years. Fifteen years
ago she set up and currently manages health & safety for Kuoni’s UK
group of companies which involves supplier checks and incident
investigations. Often this involves travelling to the incident to manage
the operation on the ground together with the local agent, or in the case
of the Sri Lankan Tsunami managing the customers arriving at the UK
airport and attending to their individual needs.
Shirley also manages the service levels provided Kuoni’s overseas agents
and representatives, which involves carrying out training and monitoring
customer satisfaction. She has also led a number of tours including
Kuoni’s centenary tour from Cairo to Cape in 2006 as well as treks
through the Amazon jungle and the Great Wall of China.
Chitral Jayatilake
Chitral has for many years been among Sri Lanka's best known wildlife
photographers, having shown his work at numerous exhibitions since
2001. An avid nature lover and conservationist, Chitral won his first
award in photography from Prince Phillip, the Duke of Edinburgh, aged
just 17.
Chitral works for John Keells Hotels Group developing Sustainable
Wildlife Tourism and Eco resorts in the conglomerates Leisure division. As
an Assistant Vice President of John Keells Group, he heads a dedicated
team of field naturalists at Keells creating nature related adventures and
his efforts has served Sri Lanka well as he has already attracted world
renowned photographers such as Amos Nachoum and Austin Stevens to
the Island filming documentaries of our bio-diversity. His passion to
develop sustainable tourism won him the Prestigious John Keells
Chairmen’s Award, and he continues to take Sri Lanka’s Bio Diversity to a
world audience. Chitral also developed a special program for corporate
team building at Walkers Tours based at Habarana tagged as “Wild
Challenge” a resident hard core outbound team event that incorporated
photography. He conducts team building and motivational events for
John Keells Hotels Group, Nations Trust Bank and visiting Indian
corporates.
Chitral has published his work thrice, his first, “Wilds of Lanka” in 2003,
Moments of Truth in 2008 and more recently “Reflection’s of the Wild” in
2012. He’s also exhibited his images in 6 exhibitions.
Chitral inspired his team nature Trails at John Keells hotels to win the Sri
Lanka Tourism coveted award for the
“Best Wildlife service provider” in 2012.
8

Anuruddha Bandara
Anuruddha Bandara also known as A.B, is an award winning
entrepreneur, Niche Tourism Specialist, Innovative Hotelier and
Management Trainer. He is the Founder/ CEO of Eco Team (Pvt) Ltd
which is the most diversified tourism specialist in Sri Lanka that has 10
renowned niche tourism brands. He is one of the pioneers who
introduced Experiential Training to Sri Lanka in year 2001 and as the
Founder / Chief Experiential Officer and the Lead Trainer of Beyond
Boundaries Global (Pvt) Ltd, he has personally led more than 300 training
initiatives out of 800 plus programs that Beyond Boundaries has
conducted already. As the Founder / President of The Sri Lanka
Wilderness Foundation he has taken his passion for environmental
conservation to a nationwide platform. Anuruddha is also a Consultant to
the private sector / NGO / Government sector including Ministry of
Tourism on Eco / Adventure tourism. He started work as a trainee
executive in a leading insurance company and rose to be a Sales Manager
in a very short time. The passion towards Nature, Adventure, Eco
Tourism inculcated in him from his formative years pushed him to resign
from a lucrative post in year 2000 and devote himself full time to
changing tourism landscape in Sri Lanka.
Shamen Vidanage
Shamen Vidanage is the Acting Country Representative and the
Programme Coordinator of the IUCN Sri Lanka office; he has been with
IUCN since 1st February 2002. He has been working in the field of natural
resource management since graduation from University of Peradeniya
with BSc in Agricultural Sciences. He holds a Masters of Science in
Environmental Economics from University of Peradeniya and Masters of
Economics from University of Colombo. Before joining IUCN he was the
Head of the Socio-economics and Market Research Division of National
Aquatic Resources Research and Development Agency (NARA) and before
that he was with Central Environmental Authority as one of the Assistant
Directors in the Natural Resources Management Division. Shamen has
contributed a lot in the use of economics principles in natural resources
management and conservation in Sri Lanka. He also has been working on
environmental impact assessment, natural resource governance,
participatory approaches for conservation and climate change adaptation
related work. He is also a visiting lecturer in environmental economics
and EIA to several universities and other academic institutions in Sri
Lanka.
Nalika Abeysuriya
Nalika Abeysuriya – Head, Whittall Boustead (Travel) Ltd, holds an MBA
in business administration from the Herriot Watt University, Australia.
Her area of specialization is with marketing, CRM and process
management.
She has been working for Kuoni & Whittalls Travels for 15 years & her
experiences with Kuoni & Whittalls Travels have given her many
qualifications over health & safety, responsible tourism and quality &
environmental functions.
9

Maria Ana Borges
Maria Ana Borges has been Programme Officer in IUCN’s Global Business
and Biodiversity Programme since July 2008. Her work focuses on
expanding BBP’s portfolio within the tourism industry as well as working
with other business sectors in becoming more sustainable. Prior to IUCN,
Maria Ana worked at UNEP’s Economics and Trade Branch on issues at
the interface of trade and climate change. She also worked in hotel
management from 2004 until 2006. Her academic background is in
Ecology (BSc (Honours) from the University of Edinburgh) and Ecotourism
(MSc from Napier University). Her experiences have taken her to several
different countries sparking her interest in sustainable tourism
management and community development as well as in the role of
business in these.
Stephanie Ossenbach-Keller
Stephanie Ossenbach-Keller, Project Manager in Corporate Responsibility
at the Kuoni Group, holds a MSc. in Environmental Science from the ETH-
Zurich as well as a CAS in Corporate Social Responsibility from the
University of Geneva. Her responsibilities include climate change risk
analysis and environmental policy development, as well as management
of biodiversity, water and child protection interventions. She has gained
further international experience while working in development
cooperation in Tanzania and later in Honduras for Helvetas, the Swiss
Association for International Cooperation.
Naalin Perera
Naalin Perera is Programme officer, Biodiversity in IUCN Sri Lanka
country programme. His area of specialization is on aquatic fauna and
butterflies but he has also been engaged in other fields of biodiversity
such as threatened species, wetland conservations, environmental
communications and floral surveys. Naalin first join IUCN in 2001 as a
field ecologist and just before he left IUCN, in 2010 he was IUCNSL’s
Communication Focal Point. He has joined IUCN Sri Lanka programme
again in June 2013.
Naalin has a BSc Degree in Natural Sciences from OUSL and a Master of
Arts Degree in Leadership and Management from York St. John
University, UK.
10

Exploring the Ecotourism Potential
1. How can the presence of similar ecotourism businesses in your area hurt or help you?
2. What should you consider in analysing the ecotourism potential of a site?
3. What is a unique selling proposition and how can it help you differentiate your business?
Discuss with your neighbour the three questions above (taken from page 23 of the textbook) and answer
these based on your ecotourism business and research you need to undertake when you get back home
11

Business Planning Exercise
An old planters club in the hill country has been identified as a potential hotel project that could be
developed to an eco-tourism venture while maintaining its cultural identity.
The total cost of acquiring and upgrading the establishment in to an eco-hotel is estimated to be Rs. 250
million with the expected simple payback to be 10 years. An additional capital expenditure of Rs 5
million is incurred each subsequent year for replacement and upgrade of assets.
(Please refer schedule 1 for further details)
Questions
1. What Points should be considered when setting up a price?
2. What are the costs to be considered in developing a price?
3. How should the pricing strategy change during peak and off-peak (Pick 2 months from peak and
2 months from off-peak)?
The following assumptions were considered to simplify the project
• All taxes and service charge was ignored
• All rooms are considered to be double.
• The project is 100% equity financed (No debt)
12

My Ecotourism Business
Here are some examples to give you inspiration for drawing your tourism business.
Think about the location, the way to access the project site, the major conservation threats in the project
area, the type of tourism services you want to offer, as well as the stakeholders involved, what their role
is, how many community members take part in the tourism activity and any other information that you
deem relevant.
13

Ideas to add to my business
Understanding your market and product
Business Planning
Sustainable Operations
Health and Safety
Human Resources
Marketing & Sales
Customer Care
New areas to explore
14

Integrating Health & Safety Human
Resources and Sustainable Operations
Listening Card:
Please note down the questions you have on the following presentations, as well as what ideas this gives
you for your own EcoTourism Business idea:
Presentation Topic What questions are coming up? What ideas does this give you for
your ecotourism business?
Health and Safety,
Shirley Fisher,
Kuoni UK
Human Resources,
Sunil Dissanayake,
The Kingsbury
Hotel
Sustainable
Operations
Chitral Jayatilake,
John Keells Hotels
15

Marketing and Sales - SWOT Analysis Template
State what you are assessing here ____________________________________________________________________________________________________________
(This particular example is for a new business opportunity. Many criteria can apply to more than one quadrant. Identify criteria appropriate to your own SWOT situation.)
criteria examples
strengths
weaknesses
criteria examples
Advantages of proposition?
Capabilities?
Competitive advantages?
USP's (unique selling points)?
Resources, Assets, People?
Experience, knowledge, data?
Financial reserves, likely returns?
Marketing - reach, distribution,
awareness?
Innovative aspects?
Location and geographical?
Price, value, quality?
Accreditations, qualifications,
certifications?
Processes, systems, IT,
communications?
Cultural, attitudinal, behavioural?
Management cover, succession?
Philosophy and values?
Disadvantages of proposition?
Gaps in capabilities?
Lack of competitive strength?
Reputation, presence and reach?
Financials?
Own known vulnerabilities?
Timescales, deadlines and
pressures?
Cashflow, start-up cash-drain?
Continuity, supply chain
robustness?
Effects on core activities,
distraction?
Reliability of data, plan
predictability?
Morale, commitment, leadership?
Accreditations, etc?
Processes and systems, etc?
Management cover, succession?
criteria examples
opportunities
threats
criteria examples
Market developments?
Competitors' vulnerabilities?
Industry or lifestyle trends?
Technology development and
innovation?
Global influences?
New markets, vertical, horizontal?
Niche target markets?
Geographical, export, import?
New USP's?
Tactics: eg, surprise, major
contracts?
Business and product development?
Information and research?
Partnerships, agencies, distribution?
Volumes, production, economies?
Seasonal, weather, fashion
influences?
Political effects?
Legislative effects?
Environmental effects?
IT developments?
Competitor intentions - various?
Market demand?
New technologies, services, ideas?
Vital contracts and partners?
Sustaining internal capabilities?
Obstacles faced?
Insurmountable weaknesses?
Loss of key staff?
Sustainable financial backing?
Economy - home, abroad?
Seasonality, weather effects?
© Alan Chapman 2005-08. Free PDF version of this tool and information about SWOT analysis methods are available at www.businessballs.com/swotanalysisfreetemplate.htm.
This is a free resource from www.businessballs.com, which contains lots more useful tools, diagrams and materials. Not to be sold or published.
16

Learning from the site visit
Question Site 1: Kalpitiya Boat Tour Site 2: Kalpitiya Home Stay Site 3: SLSFF Chilaw
How are they developing the
ecotourism potential of the site?
How are they ensuring
sustainability?
What are the key health and
safety issues? How are they
managing them?
What are the key human
resources issues?
How is the site being promoted?
17

Contacts
In the table below you can make notes of the people you met during this learning opportunity and in
what way they might be useful for your tourism business concept.
Organisation and contact person
Subjects and actions
18

Notes :
19

Annex I - Business Planning Exercise Solutions
Schedule 1
Number of Rooms 34
Total Days 365
Total Available Rooms 12,410
Expected Occupancy 60%
Room Nights 7,446
Total Capital Investment (LKR) 250,000,000
Capital Investment Per Room (LKR) 7,352,941
Expected Payback period (Years) 10
Annual Investment Recovery (LKR) 25,000,000
Annual Additional Capital Expenses 5,000,000
Direct Cost Involved
Room Cost per room Night (LKR) 200
Food Cost per person (LKR) 1,000
Off Peak May Jun Jul Aug Sep Oct
Room Nights 422 408 422 738 561 632
Occupancy 40% 40% 40% 70% 55% 60%
Peak Room Nights Nov Dec Jan Feb Mar Apr
Room Nights 713 842 842 724 632 510
Occupancy 70% 80% 80% 76% 60% 50%
Staff Requirement No. Staff
Avg Salary
(LKR)
Total
Monthly
Salary (LKR)
Annual Salary
(LKR)
Kitchen/Restaurant 17 15,000 255,000 3,060,000
Housekeeping 12 12,500 150,000 1,800,000
Admin/Stores/Finance/Front Office/Maintenance 13 14,000 182,000 2,184,000
Manager 1 55,000 55,000 660,000
Total Staff 43 642,000 7,704,000
Other Overheads (Annual)
Fixed Variable Total
(LKR) (LKR) (LKR)
Energy 1,000,000 1,800,000 2,800,000
Maintenance 600,000 300,000 900,000
Sales Promotions 700,000 700,000
General O/H 3,200,000 300,000 3,500,000
Total 5,500,000 2,400,000 7,900,000
Variable Cost Per Room Night LKR Remarks
Room Cost per room Night (LKR) 200
Food Cost per person (LKR) 2,000 1,000 * 2Pax
Variable component of Other Overheads (LKR) 322 2,400,000/7,446
2,522
Total Fixed Cost
Salary Cost (LKR) 7,704,000
Fixed component of Other Overheads (LKR) 5,500,000
Annual Investment Recovery (LKR) 25,000,000
Annual Additional Capital Expenses (LKR) 5,000,000
43,204,000

Q1 - What Points should be considered when setting up a price?
Cost of the product/service
Size of the investment and expected return
Competitor behaviour and offerings
Demand for the product/service
Nature of the product (How similar/different it is from the competition)
Customer profile and source

Q2
Total Cost of a Double Room
(LKR) Remarks
Room Cost 200
Food Cost 2,000 (1000*2 Pax)
Direct Cost Per Room Sold 2,200
Staff Cost 1,035 Working 1
Other Overheads 1,061 Working 2
Total Overheads Per Room Sold 2,096
Cost Before Capital Recovery 4,296
Investment Recovery Per Room Night 4,029 Working 3
Total Cost/Minimum Selling (Base) Price 8,325
Working 1 (Staff Cost)
Total Annual Staff Cost (LKR) 7,704,000
Total Room Nights 7,446
Staff Cost per Room Night (LKR) 1,035
Working 2 (Other Overheads)
(LKR)
Energy 2,800,000
Maintenance 900,000
Sales Promotions 700,000
General O/H 3,500,000
Total 7,900,000
Room Nights 7,446
Total Overhead per Room Night (LKR) 1,061
Working 3 (Investment Recovery)
Annual Investment Recovery (LKR) 25,000,000
Annual Additional Capital Expenses 5,000,000
Room Nights 7,446
Investment Recovery Per Room Night (LKR) 4,029

Q3
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Rooms 34 34 34 34 34 34 34 34 34 34 34 34
Days 31 28 31 30 31 30 31 31 30 31 30 31 365
Available Rooms 1,054 952 1,054 1,020 1,054 1,020 1,054 1,054 1,020 1,054 1,020 1,054 12,410
Occupancy 80% 76% 60% 50% 40% 40% 40% 70% 55% 60% 70% 80% 60%
Total Room Nights 842 724 632 510 422 408 422 738 561 632 713 842 7,446
Variable Cost/Room Night 2,522 2,522 2,522 2,522 2,522 2,522 2,522 2,522 2,522 2,522 2,522 2,522
Total Variable Cost 2,124,162 1,824,949 1,595,116 1,286,384 1,063,410 1,029,107 1,063,410 1,860,968 1,415,022 1,595,116 1,798,364 2,124,162 18,780,171
Fixed Cost 3,600,333 3,600,333 3,600,333 3,600,333 3,600,333 3,600,333 3,600,333 3,600,333 3,600,333 3,600,333 3,600,333 3,600,333 43,204,000
Fixed Cost/Room Night 4,275 4,976 5,693 7,059 8,540 8,824 8,540 4,880 6,418 5,693 5,050 4,275
Total Cost (Base Price) 6,798 7,498 8,215 9,582 11,062 11,347 11,062 7,402 8,940 8,215 7,572 6,798 8,325
Price 9,990 9,574 8,215 7,492 6,660 6,660 6,660 9,157 7,909 8,325 9,157 9,990
Profit/(Loss) 2,688,491 1,501,474 - (1,065,565) (1,855,905) (1,912,177) (1,855,905) 1,295,060 (578,574) 69,249 1,130,377 2,688,491 2,105,015