Tourism Site Project with up to 60% Internal Rate of Return

Opportunity Snapshot

Investment Opportunity

The funding is required to build a beautiful wooden cottage and main hall. It will be used to finance the required start-up assets and to maintain initial running costs.

The plan is to establish a camping site and space for private events (weddings, parties, company, school and family weekend outings, etc.) – all at the sight of a beautiful South Western Coast. The idea, and a distinct one in the market in this region, is to add local traditional flavour to the site. Local people will come and showcase their beautiful traditional produce (Food, Bead work, Sculpture, etc.).

I am currently in the field of Business Consultancy & Bookkeeping. Through exploration and love for nature, I discovered this beautiful site located in the South Western Coast line. During my numerous visits at the site I noticed that there were lots of people visiting the site to relax, take photos of the beautiful coast line, and camp out – and all I saw was a business opportunity! I found the owner of the ERF who used to farm at the site, had a proper meeting with him, and we agreed that I can manage and utilize the land as I explained the plan to him.

THE MARKET

The market is unquestionably huge for this form of business in the Garden Route area. As I mentioned above, there’s currently huge numbers of people visiting the coast line near the site, and there is nowhere they can get some refreshments, enjoy the local tradition and culture, and there is nothing else they can take away besides the pictures they take at the sea, which is 5/10 minutes away from our site.

THE OPPORTUNITY

Approximately 30 minutes from this particular site, there’s the Victoria Bay, and a little further the Wilderness. The problem as per experience and hearing from many customers is the ease of accessibility and pricing that hinders a lot of customers from that part of the market, coupled with a lack of the local traditional feel if you like. That is what draws a lot of people to this particular site – it is easily and freely accessible, but there is no food, shelter or anything else on offer – and that’s the Opportunity!

THE SOLUTION

A camping site and space for private events (weddings, parties, company, school and family weekend outings, etc.) at the sight of a beautiful South Western Coast. I have a vision of a beautiful wooden structure, with a view facing directly at the coast line. One of the aims is to try keeping the costs as low as possible, not tampering with quality – and that will afford us a reasonably lower but profitable price. As there are numbers of people visiting the site already with nothing much to take away except for the sea view, the idea is to give our customers or visitors something to take away and remember – and really to draw them and others back to the Village by the Sea!

THE MANAGEMENT TEAM

I am very confident that the product as explained above will be able to attract the required number of customers willing to pay. I am also confident that with my experience in the field of digital marketing I can put that into good effect in increasing the volumes. I have also been working with people in my own Business Consultancy venture I will be looking to employ those people management and financial skills into the success of this venture. One person I know who will also be involved in the project, Mrs. Daphne M. will add great value in the management of people and the business in general, with 25 years experience in the Hotel/Restaurant industry.

Competitive Advantage

A few competitors reside in the Victoria Bay, and the Wilderness area. One good thing is that they all are not offering anything special to the customers. Customers just go there, eat, drink, and sleep – and there is nothing special to take away. And I strongly believe that culture and tradition of a particular place, coupled with the natural surroundings (the sea, trees, rocks, etc.), are the best things that visitors can take away as an experience – and that is where I believe we will enjoy a competitive edge.

Use of financing

The funding is required to build a beautiful wooden cottage and main hall, facing right at the sea front.

It will be used to finance the required start-up assets and to maintain initial running costs.

Opportunity for the investor

Investment = R500 000
Investment Period = 5 years
Investor Internal Rate of Return = 60%
Exit Value of the business = R7 864 320
Discounted Value to today’s value = R750 000
Investor ownership = 66%
Investor Return on Investment = R5 190 451

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