The Golf Sports Tourism in New Zealand - Case Study Example

Feasibility Study Name: Institution: Date: Table of Contents Table of Contents 2 Executive Summary 3 Feasibility Study: Golf Sport Tourism Industry 4 Introduction 4 Golf Sport Tourism Industry 4 Core Products 5 Design, Construction, and Operation Center 6 Financial Analysis 7 Site Analysis 7 Service Delivery 8 Market feasibility 9 Facilities 10 Suppliers 11 Inventory 12 Variations in Demand 12 Human Resource Management 12 Recommendations 15 Technical Feasibility 15 8.0. References 17 Executive Summary The Golf Sport Tourism will be a leading sport tourism industry globally and is situated in tourist destination in New Zealand. The Golf Tourism industry is among other tourists’ attraction facilities, which serves tourist from around the globe. The Golf Sport Tourism primary provides tourist with excellent attraction sites, accommodation, and other recreational facilities. Feasibility Study: Golf Sport Tourism Industry Introduction Purpose of the feasibility study is to enable the government of New Zealand to review the probable performance of the lodging assets and allow in attraction of the potential investors. This report covers the feasibility study of Golf Sport Tourism Industry where this is the biggest sport tourism industry in the world providing excellent services. In the feasibility report of the tourism industry, the New Zealand market has been acknowledged as the potential future operation of the tourism industry in relation to the aspects of accessibility and other related location aspects in the face of the changing and competitive business environment (Neil, 2011). Golf Sport Tourism Industry The Golf Sport Industry will be located in the capital city of NZ, which has been identified, by the government and other stakeholders as the best location for the industry. The site in the heartland of the NZ tourism site provides excellent environment aimed at an opportunity to upgrade related industries to the heartland and other tourism centers. The industry planning is in line with the company’s strategies to build an excellent tourist destination in the city. Accordingly, the tourism sports center is a crucial component of attaining these planning outcomes that will act as a booster to build the position and profile of Golf Sport Tourism Industry within the heartland of NZ. The tourist destination will avail sustainable economic expansion and tourism growth in NZ and its city as a whole. The feasibility report establishes through estimates that the industry in the third year of operation would attract estimated 120,000 tourists that would generate approximately $3 million revenue and at the same time creating 32 full-time employment opportunities to the local population. In addition, the industry will be in a position of availing $12-17 million investment in terms of infrastructure for the next eleven years in the form of construction and future expansions. The industry will also promote the aspect of cooperate social responsibility to the local population within and outside the city. The industry will stimulate economic expansion thus leading to job creation and economic diversification. Core Products Following competitive negotiation and consultation, the proposed core products of the tourism industry are: 1. Interpretive sport center that will engage, challenge, educate, entertain and train tourists on sustainable built settings and natural environments, energies and sites to arouse customer awareness and dedication in buying sustainable products of the company. 2. Visitor information center, an accredited and updated information concerning the products provided by the Golf Sport Tourism Industry. 3. Natural Science center, which provides inclusive learning, hands-on activities that are appealing to all the age groups visiting the industry. Associated services that will support the core products include: 1. Transport hub that will be used to transport visitors and products from various destinations. 2. Café and restaurants that will serve food and drinks to the tourists in the evening and during exceptional events. 3. Merchandise that will provide shopping variety to tourists, banking services, comprising a licensed merchandise variety of products. Design, Construction, and Operation Center The feasibility study suggests that the construction, design, and operation of the tourism venture comply with the existing leading-edge global international principles –benchmarking, improvement and certification structure for sustainable tourism and journey. The adjacent rich tourist economic environment that has been studied establishes demographic and economic aspects that may influence the future demand for the attraction site. The market for Golf Sport Tourism industry in the report is investigated, based on aspects like the length of the stay, daily demand changes, and the intention of the visit, seasonality, price sensitivity, facilities, and amenities. The analysis of accessible and suggested competition provides an indicator of the present accommodated demand in the Golf Sport, alongside with market entry, and the extent of competitiveness. A feasibility analysis is undertaken that contrasts the net present value of the speculated cash flow to an approximated progress of the recommended Golf Sport Tourism venture in New Zealand (Enz, 2006). The site for the facility of lodging for the Golf Sport is well served with infrastructure network, and the proposed site will be located along the Highway 31. The facility is expected to benefit from the visibility from within the local neighborhood. This will undoubtedly promote the aspect of accessibility of the facility by the tourist because the Golf Sport Tourism Industry is one of the global luxurious tourism facilities. Financial Analysis The aspect of both private and public engagement wills a key role in the financial system of the industry. The industry will also benefit from the government because it is highly profitable tourism venture in NZ. The facility according to the feasibility study is located in the middle of the proposals that are a Private-Public Partnership (PPP), which is the most feasible choice. The feasibility study indicates that the industry will generate enough income cover its own expenses .The main revenue identified include admission and commissions, rental incomes, sales and licensing income. The financial feasibility in the report can be extracted and determined by the view on the practicability of the financial estimates and capability of the business to attain the estimated revenue and cash flows within the Golf Sport. An evaluation of the cost accounting system, the presence of limited or short-term credit for perennial business, and the sufficiency of raw materials and suppliers are further taken into account. The facility estimated income has been projected, and it was concluded that the economic aspect of the project is feasible (Neil, 2011). Site Analysis Golf Sport Tourism Industry has the opportunity to develop and expand a signature heartland and tourist destination that has iconic features for tourists. The feasibility study suggests that the industry be located adjacent to the city’s’ superhighway to optimize its visibility and accessibility to this main tourist attraction center. Because of its location eight miles from the capital city of New Zealand gains from the strategic location in New Zealand. The location of the Golf Sport Tourism Industry as a potential area will promote growth and allow expansion of the Golf Sport facilities to be accommodative the enormous number of tourists visiting the Golf Sport. The Golf Sport is also situated in the Tyler, which is a region that enjoys both politically and economical stable environment in the face of changing trends in the business environment globally. Furthermore, the recent finished golf game facilities and building of many pitches for playing the game provides a ready market for the Golf Sport (Neil, 2011). The industry’s’ premises will be constructed using the modern building resources. The labor will be provided by the civil engineers, architects, site workers, and landscapers. Some of the materials like timber and bricks will be acquired locally thus reducing the cost of construction. The following are estimates of the materials and other requirements needed: 1. Tiles.....................$ 440 2. Timber…………..$ 230 3. Iron sheets………$640 4. Bricks………….,.$1,100 5. Fencing material .$120 6. Concrete………..$300 7. Cement…………$677 8. Labor……………$2,000 9. Other expenses….$1,200 Service Delivery a This The schematic diagram shows the process of service delivery for a tourist in Golf Sport Tourist Industry. Market feasibility The venture will enjoy worldwide market from Dubai and England mainly. The aspect of market feasibility is evidence through the information on the sales of the Golf Sport and its management status and market region, marketing strategies in the company structure for sale of the project output. The other indicators on this aspect of feasibility are the degree of competition and commitments from the Golf Sport s’ consumers and brokers. The proposed Golf Sport facility management entity will be projected to be well articulated in the Golf Sport operations. The NZ has no adequate lodging facilities thus contributing to the feasibility of the facility in the market (Scarborough, 2011). There is increasing demand for sporting facilities especially in the western part of NZ hence the element of market feasibility. The favorable conditions and the construction site provides fair market feasibility because of the popular brand connection, is anticipated to attract more users of the facility especially creating demand for its clients and highway travelers. Facilities The company’s facilities meet the technological advances, which include: 1. Modern lodges…………………………….$ 23 million 2. Golf facilities……………….........................$ 14 million 3. Restaurants and Cafes………………………$ 45 million 4. Kitchen Facilities…………………………….$9 million 5. Recreational and entertainment equipments….25 million The feasibility study establishes that the industry needs to expand its facilities in the next five years to meet the ever-growing number of tourists from all over the world. The study specifically recommended that there was a need to expand the number of lodges and cafes using the modern technological advances. The aspect of technological feasibility of the proposed facilities describes the appropriateness of the facility’s’ location for its proposed use, as well as the feasibility of achieving the levels of revenue estimated and approximated operational costs of the Golf Sport. With the availability of the land for market expansion, the technological feasibility of the proposed facility is practical and applicable. The overall location of the facility site and the physical plan promotes this aspect of technological feasibility. The availability of excellent facilities for golf sport provides timely market to the sport (Enz, 2006). Suppliers The industry has a rich setting where the company can get its supplies of golf materials, building materials, food materials because of its strategic position in the city. The location of the site is accessible to the industry’s suppliers and availability of excellent infrastructure. The report further established that there was the need to analysis the impact of emerging Golf Sport s within the city’s’ environs, and it was summed that there was no new Golf Sport s in the region. The absence of the emerging Golf Sport s in the area means that the demand for lodges by tourist will increase and subsequently the feasibility of the Golf Sport undertaken will be positive. The market gains from the modest number of tourist and leisure attraction centers in the area. This means that tourists in these centers provide a ready market for the services offered in the Golf Sport. The tourist contributes directly to the economy of the Golf Sport and that of the NZ community where the facility will constructed. The region where the Golf Sport is located is stable both economically and politically thus attracting more tourist to enjoy the luxurious facilities in the world that meets the world threshold (Neil, 2011). The contractors of the industry are out-sourced from reputable contracting companies within the city. The companies make an application for the advised contract with non-refundable contract fee. The company asses the various applications against set standards of the contract to determine the company that will qualify by meeting the criterion used. This exercise is extremely competitive where at the end of the exercise successful company is called upon for signing of the contract. The company also presents the contractor with the regulations of the contract and the mode of payment before signing the contract form. Inventory The feasibility study establishes that the company will have accomplished inventory system, which is structured in a manner to meet the demands of the tourist. The company orders its inventory goods in every one week to ensure it caters for any shortage of the same. The managers ensures that the company’s’ is managed adequately to avoid inadequacy of the goods. The company has modern storage facilities where perishable goods are kept to avoid wastage. The company employs competent workers who have adequate knowledge in inventory systems. Variations in Demand The company will ensure that it is prepared to meet all the seasonal variations. The company has educated and encouraged the local populations to utilize the tourists’ sites during the off-peaks periods to ensure that the facilities are not underutilized. During the peak periods, the company ensures it maximizes on the foreign tourists attending their facilities. In addition, their employees during low seasons are given leave for one month. This is done systematically to benefit all the employees. Human Resource Management The industry will employ the following workforce: Worker Recruitment Remuneration (Monthly) Chief Executive Officer Consultancy firm $ 2,000 Senior Manager Consultancy firm $ 1,500 Human Resource Manager Consultancy firm $1,450 Manager Consultancy firm $1,200 Cateress Company $ 800 Drivers Company $700 Tourist Guides Company $500 The employees are subjected to a rigorous recruiting exercise by a contracted recruiting company. They should posses’ high academic qualifications and experiences. The human resource plays a crucial in ensuring that the workforce meets the expectations of their customers in the face of competitive business environment. The resource manager equips employees with modern skills and technological advances in the Golf Sport industry. In turn, this will enable the employees meet the needs of their clients in time and satisfactory manner. The human resource manager in the Golf Sport Tourism Industry promotes the employees skills by providing constant training to employees. This in turn, fosters the morale of the workers increasing both the reputation and profits of the Golf Sport thus making the expansion strategies feasible. The human resource personnel are in charge of recruiting new employees within the industry. Golf Sport, the new employees provide a new system of service delivery hence changing the approaches of service delivery within the Golf Sport. The role of the human resource executive in this case is to guarantee that the right employees are employed that those employees with competence. This, in turn, will improve the efficiency of the Golf Sport thus increasing the feasibility of the Golf Sport. The report highlights the function played by the resource administrator in ensuring the employees recruited have high esteem to work in the challenging industry (Bardi, 2010). The employee upon employment will sign rules and regulations governing the behavior in the company .These rules outlines measures that is taken upon violating them. IT also guides the management on the modes and principles of dismissals and grounds for such dismissals. Furthermore, these enable the management to evade any legal actions taken by the employee upon either lawful or unlawful dismissal. The resource manager has also the role of retaining the employees within the Golf Sport . The manager ensures that the employees are retained providing a favorable environment in which employees can work effectively. The resource manager in Golf Sport Tourism Industry has succeeded in retaining employees in the Golf Sport by capitalizing on providing an enabling environment that employees can work without any difficulty. These managers have influenced and motivated the employees through offering them excellent training and incentive programs that will make the employee work in the Golf Sport for a longer time. This has boosted the level of productivity within the industry hence making the expansion and constructing of new lodges possible (Neil, 2011). Recommendations 1. The Golf Sport Tourism Industry should ensure that carry out promotion of their business to ensure that they win the tourist globally. The Golf Sport need to set funds meant for advertisement and develops the necessary strategies to promote the Golf Sport globally. 2. The Golf Sport needs to improve the customer relations by meeting their needs in time. This means that the Golf Sport management needs to focus on training to its employees to ensure they provide high-class services. 3. The Golf Sport also need to study carefully what the rival Golf Sports are doing in order to develop counterstrategies thus enabling them expand quickly and meet feasibility aspect on its projects (Bardi, 2010). Technical Feasibility The Golf Sport Tourism Industry is situated in a strategic position, which has rich tourism destinations in the world. This is combined by the fact that the Golf Sport being the leading in the world enjoys an excellent reputation especially in service delivery. The Golf Sport also has well-structured human resource that ensures that the Golf Sport labor provides the best services within the industry. The Golf Sport also faces strong competition from other rival Golf Sport s that provides the same services. The Golf Sport Tourism Industry faces competition from other luxurious Golf Sport s situated in the same location of Chandler community. This Golf Sport provides competitiveness in this environment. This rival Sports in this region includes skating and swimming in NZ. These sports by the analysis of the report cannot challenge the Golf Sport, which is competitive and their service delivery meets the world threshold (Neil, 2011). In addition, the position of the industry is located on the highway and adjacent to main airlines carrying tourists from around the globe. The Golf Sport facilities are surrounded by tourist centers useful in promoting the demand for their facilities by the tourist and increasing the attendance rate. Consequently, this indicates that the feasibility of the Golf Sport is boosted, and expansion of the facility by increasing the facilities within the Golf Sport should be undertaken (Enz, 2006). The positive feasibility status of the Golf Sport has enabled them to outweigh them by providing exclusive and excellent services. The Golf Sport is endowed with vast resources that will enable them to expand thus in cost-feasibility-analysis the net value is positive. This indicates the company’s undertakings are viable, and should continue with its plans of building extra facilities to take care of the rising demand by the tourists. Therefore, it can be concluded that the feasibility study of Golf Sport reveals that the Golf Sport undertakings are feasible, and the company can fully undertake its projects (Neil, 2011). 8.0. References Bardi, J. (2010). Golf Sport Front Office Management. New York, NY: John Wiley and Sons Enz, L. (2006). Revenue Management in Golf Sport s, 2001-2005. Cambridge: Cornell University, School of Golf Sport Administration, the Center for Hospitality Research Neil, E. (2011). Frommer's New York State. New York, NY: John Wiley & Sons. Nina, Z. (1995). U.S. Golf Sport s, Resorts, & Spas. London: Zagat Survey PKF Consulting (Firm). (1998). State of the U.S. Golf Sport Industry: With Projections for...Chicago, CA: PKF Consulting. Scarborough, N. (2011). International Edition. Effective Small Business Management (10th International Edition). Old Tappan, NJ. Prentice Hall PTR Read More