Sikkim Part c

8/8/2019 Sikkim Part c

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Govt. of India

Ministry of Tourism & Culture

Department of Tourism

Market Research Division

Final Report

Part C: Project Profiles

On

20 YEARS PERSPECTIVE PLAN FOR

SUSTAINABLE TOURISM DEVELOPMENTIN THE STATE OF SIKKIM

November 2002

By:

Horizon Industrial Consultancy Services

New Delhi


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Contents

Project Profiles

1. MINIATURE VILLAGE

2. FOUR ECO RESORTS

3. INTEGRATED RESORT COMPLEX AT CHEMCHEY

4. ENTERTAINMENT COMPLEX WITH BOWLING AND OTHER

RECREATION FACILITIES.

5. AMUSEMENT PARK PROJECT

6. ART AND CRAFTS VILLAGE

7. FILM CITY PROJECT

8. RESIDENTIAL SCHOOL

9. SETTING UP OF A HIGHWAY RESTAURANT

10.PROPOSAL FOR SETTING UP SPA RESORT

11. PROPOSAL FOR SETTING UP A FIVE STAR HOTEL.

12. DEVELOPMENT / IMPROVEMENT OF OTHER ATTRACTION / TOURIST

INFRASTRUCTURE.

A. SOUND AND LIGHT SHOW AT RABNDISE RUINS

B. SETTING UP OF MUSICAL FOUNTAIN

C. DEVELOPMENT OF TOURIST INFRASTRUCTURE.

13.PARALLEL ROAD TO NH-31A.


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Proposal For Setting Up Eco

Resorts At All The Four

Districts Of Sikkim


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Proposal for setting up Eco Resorts at all the Four Districts

I. LAND, ACCESSIBILITY & OTHER INFRASTRUCTURE

Plot of land of 10 to 15 acres with a natural scenic backdrop needs to be

identified for development of Eco resorts. The identified plot should have a

beautiful Mountain/ green backdrop. The plots should have approachable

roads connecting the State High way Roads. It is advisable to develop

these facilities along the outskirts of the towns.

For planning of specific facilities and services at the location we have

taken into account the following target segments projected to the year

2005:

1. Domestic tourists

2. Foreign tourist traffic

3. Local Population

II. MARKET ASSESSMENT

For the purpose of quantification of the traffic volume to the proposed

facility projection of domestic tourists & foreign tourist arrivals to Sikkim

for the year 2005 has been considered after taking into account the time

factor needed for the commissioning the facility. The projected / expected

level of traffic volume to the proposed facility are based on the Market

survey conducted by Horizon at Sikkim.

For calculating the average traffic flow to the proposed facility, the

expected level of patronage from the domestic and foreign tourists staying

over for more than two nights, the foreign tourists and local urban

population of Sikkim are considered. The survey findings are based on the


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size of the target population (in terms of both age and income groups) and

the envisaged level of patronage.

Demand-supply projections for accommodation units

As regards to the market scenario and the demand-supply projections for

accommodation units, an independent assessment of accommodation

exercise for the Sikkim State has been carried out as part of the exercise

for preparation of tourism perspective plan for the State. As may be

measured there from, the demand supply gap by 2005 has marked one in

the region of 851 rooms. The corresponding picture for hotel rooms would

however work out as under: -

Total demand for hotel rooms by 2005 1701

Existing Room availability 850

III. RECOMMENDATIONS - OUTLINE OF PROJECT CONCEPT

Looking at the various factors including level of envisaged visitor traffic to

the proposed facility, specific locational features including the need to

cater to the interest of the domestic & foreign tourist and the local

population. Certain basic minimum facilities which the investor has to

provide at the location have been proposed. The entrepreneur howevercould alter the product concept/ mix.

Basic minimum facilities primarily catering to the requirements of

business segment / foreign tourists could be as under: -

No of Cottages (1 cottage equivalent to 2 rooms) 30 cottages i.e. 60 rooms

Restaurant 50 (seating Capacity)

Coffee Shop/ multi-cuisine/ Open air restaurant 100 (seating Capacity)


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Bar 50 (seating Capacity)

Conference Hall / Banquet hall 50 (seating Capacity)

Swimming Pool

Health Club

Children Play area

Indoor games centre

Public conveniences

IV. COST ESTIMATES, PROJECTED PROFITABILITY AND CASH

FLOW

The relative built up area configuration / details of individual elements

appear in Appendix A. The indicative project cost exercise attempted on

normative basis / based on industry cost structure for the purpose of

attempting project viability exercise, is enclosed as Appendix B.

The broad revenue assumptions underlying profitability projections have

been separately listed as Appendix D. For the purposes of revenue

estimates, it has been presumed that the proposed resort hotel would

reach 70% occupancy in the third year of operation.

The statement showing the projected income for the next 10 years & the

net cash flow for the proposed facility based on the above underlying

revenue assumptions is enclosed as Appendix C.

The Debt Service Coverage Ratio and the Internal rate of return for the

proposal is 1.7 and 19% respectively. This indicates that the project is

financially viable and complying with the criterion for loan approval.


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Project Proposal For Setting

Up A Tourist Resort AtChemchey


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Project Proposal For Setting Up A Tourist Resort At Chemchey


The proposed site measuring about 22 acres is located at an

altitude of 1906 m above the sea level near Chemchey village 3 km

away from Damthang. The site is easily accessible from Darjiling,

Gangtok with in a 2 to- 21/2 hour drive The site is strategically located

near Temi Tea Garden, Tendong Nature Reserve Maneam wild life

sancturary. The State Govt has prepared the project report from TECS.

The concept for the resort is evolved from the expected behaviour and

interest of target tourists and the unique location of the site and the

need for integarating the resort with local culture

The concept is

Experience Sikkimise hospitality in a pristine Himalyan

environment for a fun filed adventurous holiday.


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Though TECS has prepared detailed market assessment the viability

of the project can also gauged by the Demand-Supply gap for the

rooms as estimated by Horizon in the Tourism Perspective Plan



for the year 2005 has been considered after taking into account the

gestation period for the commissioning the facility. The projected /

expected level of traffic volume to the proposed facility is based on the

Market survey conducted by Horizon at Sikkim.


expected level of patronage from the domestic and foreign tourists

staying over for more than two night, the foreign tourists and local urban

population of Sikkim are considered. The survey findings are based on

the size of the target population (in terms of both age and income groups)

and the envisaged level of patronage.


As regards market scenario and the demand-supply projections for



for preparation of tourism perspective plan for the State. As may bemeasured there from, the demand supply gap by 2005 has marked one

in the region of 851 rooms. The corresponding picture for hotel rooms

would however work out as under: -


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Looking at the various factors including level of envisaged visitor traffic

to the proposed facility, specific locational features including the need to


population, certain basic minimum facilities which the investor has to

provide at the location have been proposed. The entrepreneur, however,

could alter the product concept/ mix.


tourists could be as under: -

Cottages 50

Tents 10

Restaurants

BarRecreational centre

Health club

Crafts village

Meditation centre

Camp Site


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FLOW

The indicative project cost exercise attempted on normative basis / based

on industry cost structure for the purpose of attempting project viability

exercise, is enclosed as Appendix A.


been separately listed as Appendix C. For the purposes of revenue



The statement showing the projected income for the next 10 years & the

net cash flow for the proposed facility based on the above underlying

revenue assumptions is enclosed as Appendix B.





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Proposal For Setting Up A

Highway Restaurant Near

Rangpo


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Proposal For Setting Up A Highway Restaurant Near Rangpo


In National Highway 31A which connects Gangtok with NJP, Siliguri and

other centres, there is need for setting up a Highway Restaurant along

the river side. A plot of 10 acres of land needs to be identified for this

purpose.

At present, only 5 acres of the total of 10 acres of land is recommended

for a wayside facility to include a few rooms (say 5 to 6 rooms), a

restaurant, and a rest room with public conveniences, specific public

services facilities like a PCO/STD/Fax/Internet, and a general purpose

provision store. A filling cum service station could also be planned for the

future. The facilities could be expanded / added over a period of time as

the traffic grows.

For planning of specific facilities and services at the location, the

following transit / tourist segments have been kept in mind.


a. Tourist traffic

Type of traffic Aggregate traffic volume/base figure

for 2015

Foreign 35189

Domestic 666512

Total 701701

% Of tourist using taxi to

reach Gangtok

80%= 561360

Target segment of tourist

with annual income of

above 1.20 lakh per annum

40%=224544

No of tourists expected visit

the facility per day

615


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facility, only the transit /tourist traffic segment is considered. The facility

is expected to start its operations by the year 2015.

Reckoning the peak traffic during the weekends/holidays (120 days in a

year) at twice the level of traffic during the weekdays (240 days in a year),

the facility would need to be planned for a peak traffic level of907 during

the weekend / holidays; the average traffic volume for the weekdays

workout at 453 numbers.

As regards the market scenario, for the accommodation units, no

independent exercise is attempted as only 5 guest rooms are planned to

start with. At peak occupancy of 60%, the average number of occupied

rooms would work out to 3.


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Looking at the various factors including level of envisaged visitor traffic

to the proposed facility, specific locational features including the need tocater to the interest of the local population and the transit traffic, certain

basic minimum facilities, which the investor has to provide at the

location, have been proposed. The entrepreneur can however add other

facilities in the proposed product concept/ mix as the traffic grows in the

subsequent years.

Basic minimum facilities primarily catering to the requirements ofbusiness segment / foreign tourists could be as under :-

a. A motel 5 rooms

b. Business / conference facilities 50 (seating capacity)

c. Multi-cuisine restaurant cum bar 100 (seating capacity)

d. Public conveniences 2

e. General Store cum Souvenir shops,

kiosks for drinks, PCO, etc. 4

f. Children Play area


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FLOW

The relative built up area configuration / details of individual elements

appear in Appendix A.The indicative project cost exercise attempted on

normative basis / based on industry cost structure for the purpose of

attempting project viability exercise, is enclosed as Appendix B.

For arriving at the revenue estimates and the visitors flow to proposed

facility has been taken on the basis of projected visitors flow considered

for planning & designing of a proposed wayside restaurant as per market

assessment exercise herein before, the broad revenue assumptions

underlying profitability projections have been separately listed as

Appendix D. The envisaged break-up/share of visitor flow to different

facilities & revenue realisation from facilities, have been incorporated in

Appendix D.

For the purposes of revenue estimates, it has been presumed that the

proposed motel would reach 60% occupancy in the third year of

operation. The statement showing the estimates of projected profitability

& cash flow for the proposed facility based on the above underlying

revenue assumptions is enclosed as Appendix C.


proposal is 1.68 and 19.70% respectively. This indicates that the project

is financially viable and complying with the criterion for loan approval.


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Proposal For Setting Up Health

Spa Resort At North Sikkim


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Proposal For Setting Up A Health Spa Resort At North District


The Indian middle income class in recent days is attracted towards nature

cure and ayurveda. In India there are only two resorts positioned

themselves as Health Spa, one is at Bangalore another one is near

Haridwar. Looking at the natural backdrop and the demand for the Health

Spa it is recommended to set up a Spa resort in the North District. A Plot

of lands of 10 to 15 acres with a natural scenic backdrop needs to

identified for development of a Spa facility in the Northern District

preferably near Chungthang the valley of orchids plants and wild life.

The identified plot should have a beautiful Mountain/ green backdrop.

The plots should have approachable roads connecting the State High way

Roads.

The proposed project would be positioned as International Health Resort

offering traditional as well as modernized style such as magnetotheraphy,

aromatherapy, balenotheraphy, Accupresuure etc, providing herbs health

food and herbal medicines. The possibility of herbal plantations could

also be explored. The propsed project in a sense would blend Health care

and Hospitality. The resort would be fully equipped with other facilities

such as Yoga Centre Meditation Hall, Library Indoor games etc.

For planning of specific facilities and services at the location we have

taken into account the following target segments projected to the year

2012:

1. Domestic tourists

2. Foreign tourist traffic

3. Local Population


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for the year 2005 has been considered after taking into account the time

factor needed for the commissioning the facility. The projected / expected

level of traffic volume to the proposed facility are based on the Market

survey conducted by Horizon at Sikkim.


expected level of patronage from the domestic and foreign tourists staying

over for more than two night, the foreign tourists and local urban

population of Sikkim are considered. The survey findings are based on the

size of the target population (in terms of both age and income groups) and

the envisaged level of patronage.


As regards to the market scenario and the demand-supply projections for



for preparation of tourism perspective plan for the State. As may be

measured there from, the demand supply gap by 2005 has marked one in

the region of 851 rooms. The corresponding picture for hotel rooms would

however work out as under: -




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Looking at the various factors including level of envisaged visitor traffic to

the proposed facility, specific locational features including the need to


population. Certain basic minimum facilities, which the investor has to

provide at the location, have been proposed. The entrepreneur however

could alter the product concept/ mix.


business segment / foreign tourists could be as under: -

No of Cottages (1 cottage equivalent to 2 rooms) 30 cottages i.e. 60 rooms

Restaurant 50 (seating Capacity)

Coffee Shop/ multi-cuisine/ Open air restaurant 100 (seating Capacity)

Swimming Pool

Yoga cum Meditation Hall

Nature Clinc

Health Club

Children Play area

Indoor games centre

Public conveniences

Therapy Blocks

Amphi Theatre


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FLOW

The indicative project cost exercise attempted on normative basis / based

on industry cost structure for the purpose of attempting project viability

exercise, is enclosed as Appendix A.


been separately listed as Appendix B. For the purposes of revenue



The statement showing the projected income for the next 8 years for the

proposed facility based on the above underlying revenue assumptions is

enclosed as Appendix C.





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PROJECT PROPOSAL OF

ALTERNATEROADROUTE


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PROJECT PROPOSAL OF ALTERNATEROADROUTE BETWEENSILIGURI TO GANGTOK

(VIA DARJEELING)

INTRODUCTION

The present road (about 114 km) route via Rangpo - Singtam

- Ranipool has following severe drawbacks

1) Congestion due to heavy traffic

2) Flooding during rainy season

3) Frequent & Long Traffic jams

The proposed alternate National Highway although slightly

longer (about 150 km) is likely to provide smoother traffic,

more avenues for site seeing, extra tourist interest and better

infrastructure on the way. It also avoids the flood problem.

The alternate route will provide more traffic and better

revenue earning models.

Some relevant points to be noted in favour of National

Highway connection:

National Highway are less than 2% of the network but

carry 40% of total traffic

SB There has been a major shift in transportation mode

from railways to Road Sector


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Primary network onl y 2 to 3% double laned, 15% single

laned

Severe capacity constraint in present primary/secondary

network coupled with lack of mobility.

Tertiary network

Connectivity is a major Issue

40% habitations not connected by all weather Roads

Present Status

Road RailwaysPassenger 85% 15%Freight 70% 30%

The above figures are all India but apply in greater measure

to Sikkim and hence to address the above issues it is

important to construct a new National Highway from Siliguri

to Gangtok viaDarjeeling.

Financing Means %ExpectedContribution

From cess on Petrol & Diesel (viacentral Govt. & NHAI) 37%

External Assistance (World Bank, ADB) 37%

Market Borrowing 19%

From Private sector participation 7%

Again these are All India figures and may vary in individual

case tike Sikkim. Further World Bank/ADB normally finance


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80% of project cost, NHAI/Central Government also provide

funding to a substantial extent. Other possibilities like

private sector participation can be organized through (i) BOT

(ii) ANNUITY and (iii) SPY'S (special purpose vehicles);

depending on passenger Traffic, revenue model, Toll fees etc.

Individual possibilities or a combination could be examined

based on ground situation

DETAILS OF FINANCING

Build, Operate & Transfer (BOT)

In order to promote involvement of private sector in

construction and maintenance of National Highways,

concession canbe offered on BOT basis. After the concession

period, which can range up to 30 years, the Road is

transferred by concessionaire. Examples are DURG BYPASS

(M.P.) and NELLORE BYPASS (T.N.)

Externally Aided Projects

NHAl is the implementing agency

Loans available from agencies like ADB, WORLD

BANK, OECF etc

In these cases, funds are transferred by Ministry of Surface

Transport (MOST) to NHAI through budgetary route and

NHAI receives fund and executes these projects. Lots of

leveraging is possible in such cases.


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NHAI FUNDING

NHAI receives funds from GOI through annual budget

allocations and leverages the funds.

Examples of NHAl funded Projects are JAIPUR BYPASS,

AMRAVATI BYPASS etc.

In case of Muradabad Bypass, an SPY (Special Purpose

Vehicle) was created and NHAl contributed a major

portion of equity.

The SPY will borrow the fund and repay in future. In this

case leveraging is very high and may this method be tried

as it is becoming popular.

BIDDING PROCESS

Two Stage process:

Stage I-

- Pre-qualification bases on Technical and Financial

Expertise and track record.

Stage 2-

- Commercial bid from pre-qualified bidders time lag to

be provides between stage 1 and 2 wide publicity to

attract potential bidders/private sector

CONSULTANCY

Consultancy services are suggested for following

component through global tendering process


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Institutional Strengthening

Construction Supervision

Project Preparation

Road Safety and Audit

Community Related Issues

Environmental Issues

Cost

The total cost @Rs 5 crores per km would be around Rs.

750 crores for a double-laned highway. Contingency cost

of Rs. 75 crores @ 10% should be provided. Another 10%

should be provided for consultancy services.

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