An investment is required to establish an Econotourism business offering differentiated product/service mix. $11,300,000 investment. 100% ROI
The community has received a 20,000 hectares piece of land that was repossessed during the Apartheid years. The duty and focus of the community is to continue to use the land productively and economically to ensure social and financial benefits. It has a plan to undertake 4 Projects:
1. EcoTourism services - 11,300,000 investment
1.1 development ($3,700,000) to run a 66 rooms lodge, 60 Caravan park sites with a working capital and marketing ($440,000) for 10 months
1.2 development (8,600,000) to run a 80 Room Hotel, 90 seat conferencing venue
1.3 development of swimming pool/jacuzzi, tennis/squash courts, bar, restaurants, health spa, tennis/squash courts
1.4 development of 100 stands package Country Lifestyle Estate
Revenue would be generated for selling off accommodatoin in the conferencing venue, Hotel/Lodging, Hunting services, and sales of the 100 stands packaged Country Lifestyle to business guests, hunters, vacationers, and nature lovers
2. Agro Processing - food production including cattle, sheep, goat rearing = initial $2,500,000 investment required). Most of the community members have their own cattle, sheep, goats, chickens would could form part of this agro processing operation.
Reveneue would be generated from the sales of the animals to butcheries, supermarkets, lodging/hotel operations, communities within the vicinity including exporting to other Provinces within South Africa and international.
3. Quarry mining - to supply coal mines being developed and property development initiatives within 10 to 15 kilometres = $5,000,000 investment required
Revenue would be generated by selling off the quarry to power stations under development, residential/commercial developers and local municipality
4. Green economy - development of solar plants and plastic recycling plant capacity to support local municipality initiatives = $9,000,000 initial investment required
The community would want to start off with the EcoTourism followed by the Agro processing.
This would ensure that tourists that visit the EcoTourism business offerings get exposed to the number of opportunities mentioned above to ensure that the intended phased approach is achieved.
The employees (executives and workers) of the mine require accommodation and the coal mine had undertaken to lease the facility for a period of at least 24 months (GUARANTEED REVENUE) at a time, with possible renewals. Business guests, vacation guests, hunters and nature lovers are the target market segments. The investors/finance loan provider capital will be repaid within 3 to 5 years of investment, with the facility being in the bush allowing game hunting and viewing.
100%ROI, 85%GP, 70%EBITDA financial performance ratios projected for the $11,300,000 to be realised through aggressive, creative marketing and dedicated, professional management/leadership mix.
5.5/6% interest rate expected from finance loan provider with a 4/5 yr payback period
Opportunity to earn money whilst being given an opportunity to visit for between 1 to 4 weeks period over a 12 months' period would be one of the service offered to timeshare investors in the Country Lifestyle Estate or those who bought full title holder investors.
The business would take at least 12 months to start generating revenue as the first 12 months dedicated to development.
Offering of a differentiated product/service mix cosisting of Conferencing, Hotel accommodation, Lodging accommodation, Caravan park, Hunting, game viewing including the packaged Country Lifestyle Estate. The business would provide a 4 star graded operation.
Excellent service delivery; Aggressive, creative marketing; Dedicated, professional management/leadership mix; Focus and treating each customer/guest as King/Queen.
The African Bush Experience that would pe provided as the only existing Hotel in this town is right in town and this EcoTourism business would be in the African Bush just 10 kilometres away from town and all amenities/schools.
Being a social entrepreneur and noting that quite a number of communities have claimed land without the necessary skills and capacity to develop and operate them productively, one identified this as opportunity to assist in getting them strategic financiers and and also access to market. It is imperative that there is rural development to ensure that wealth and employment is created.
Yes, providing Ecotourism accommodation is a growing market which is also supported and championed by the South African government as part of its rural development strategy and employment creation.
Furthermore, one has selfish interest as I am part of this community and trying to use my skills to benefit my own community and create sustainable employment and wealth from this asset that we now own.
Thus positive returns are envisaged as reflected in the business and revenue generation model above, in the other sectoins
The investment is required to undertake the development as indicated
1. 52 Room Lodge, Caravan Park
2. 80 Room Hotel, 90 seat Conferencing with related infrastructure
3. Operational and marketing costs
Earn positive returns given the minimum 100%ROI, 85%GP, 65%EBITDA
Thus profit share for the investor as a 15% shareholder
5.5/6% interest rate expected from the finance loan provider with a 4/5 year payback period
Possible limited international marketing involvement