Impact of Tourism on Island Destinations

The assignment examines the multifaceted effects of tourism on islands, considering its contributions to economic development, potential for cultural enrichment, and environmental challenges. Students are expected to draw upon a range of academic sources to provide a comprehensive analysis of these impacts and consider sustainable tourism practices.

HOSPITALITY
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
CHAPTER 2 ...................................................................................................................................1
Development plan...................................................................................................................1
CHAPTER 3....................................................................................................................................2
CHAPTER 3: FEASIBILITY PLAN..............................................................................................2
Inventory schedule (FIFO).....................................................................................................2
Depreciation Schedule............................................................................................................4
Forecasted Cash flow statement.............................................................................................4
Forecasted Income statement.................................................................................................5
Forecasted financial position..................................................................................................7
CHAPTER 4 .................................................................................................................................18
Suitability of new product and service.................................................................................18
SWOT ANALYSIS..............................................................................................................19
CHAPTER 5 .................................................................................................................................21
PESTLE analysis on development of product and services.................................................21
CONCLUSION..............................................................................................................................21
REFERENCES..............................................................................................................................22

INTRODUCTION
The term hospitality management plays vital role in order to provide the best
accommodation services to individual. The main aim is to provide improved hospitality services
to the guest. This is one of most established industry in the world. The present report will outline
the activities of the business activities in relation to hotels, which are providing its services to
travellers and backpackers in manner as budget oriented, sociable accommodation in which guest
can rent the bad for the specific period (Akroush and et.al., 2016). In addition to this, their
product of services as smart hostel and it's providing the shared accommodation to the random
travellers. In this the innovative approach about this is to offer concept like share
accommodation. The main aim is to provide modern services so that It will remain competitive
in the market. They are offering services as self check in system thus, it is helpful in order to
have increment in customer satisfaction. In this the customers are need to be targetted between
the age of 18 to 35, it is specially for student from school and universities. The services are
providing in the attractive packages so that they stay in hotel for the longer time. The present
report will be inclusive of activities as are development plan, porters five forces and SWOT and
PESTLE analysis.
CHAPTER 2
Development plan
This is need to be taken in order to bring changes in the features of the product and
services of the firm. The strategy is something which define how things are need to get done. A
good strategy will be helpful to develop the existing barriers in the firms and will be helpful in
relation to meet out the vision, mission and aims. This is helpful in order to taking advantage of
resources and emerging the opportunities so that things can be done effectively. There are
various kinds of strategy is need to be carried out so that function of the firm can be run in
effective manner. The smart hostel is using the product differentiation strategy so that individual
to the firm can get attracted towards the working of enterprise.
1. Product differentiation strategy- It is the kind of marketing process which works as to produce
those products which have some unique identity in the market. This will be helpful in relation to
capture the long term market share. With the help of this kind of technique the firm is able to
earn the large amount of profitability and productivity. The Smart hostel is providing the hare
1

accommodation services to the backpackers and travellers, it is one of the attractive feature about
their services in the market.
CHAPTER 3
CHAPTER 3: FEASIBILITY PLAN
To initiate the hospitality activity there will be initial need of funds which will be helpful
in meeting the operational requirements. Therefore, there can be adequate development of plans
policies which will be fruitful to Smart Hostel as to have unique development of business
activities. Moreover, the professionals at Smart Hostel have planned to initiate the business plan
with £350 million. Therefore, it has been analysed here that the business must make adequate
increment in the plans and policies which will be helpful as per improving the operational
activities. Moreover, the following reports are based on forecasted and it has been assumed that
the business will have appropriate gains (Financial feasibility, 2018). Similarly, there has been
adequate gains and profits which in turn helps in improving the operational feasibility as well as
business efficiency. Thus, it has been assumed here that the business will have appropriate gains
as per the balancing the costs in a most effective manner.
Inventory schedule (FIFO)
INVENTORY SCHEDULE (FIFO)
Year 1
Initial Balance Acquisition Consumption Final Balance
Qty Cost Qty Cost Qty Cost Qty Cost
Beg-
packer'
s 1,500 £98.00 980 £100.00 820 £105.00 1,340 £103.00
Single-
bed
room 2,000 £105.00 1,050 £110.00 950 £115.00 1,900 £110.00
Double
-bed
room 2,200 £220.00 1,150 £225.00 1,020 £228.50 2,070 £223.50
2

restaur
ant 1,800 £250.00 780 £255.00 750 £260.00 1,770 £255.00
bunk
bed 1,000 £280.00 420 £290.00 400 £300.00 980 £290.00
£325.00 £880.00 £903.50 8,060 £878.50
Year 2
Initial Balance Acquisition Consumption Final Balance
Qty Cost Qty Cost Qty Cost Qty Cost
Beg-
packer'
s 1,500 £100.00 1,120 £115.00 920 £120.00 1,300 £105.00
Single-
bed
room 2,000 £110.00 1,500 £120.00 1,150 £125.00 1,650 £115.00
Double
-bed
room 2,200 £268.50 1,820 £280.00 1,650 £295.00 2,030 £283.50
restaur
ant 1,800 £320.50 1,320 £330.00 1,250 £335.00 1,730 £325.50
bunk
bed 1,000 £360.50 976 £380.00 870 £395.00 894 £375.50
£1,159.5
0
£1,225.0
0
£1,270.0
0 7,604
£1,204.5
0
Year 3
Initial Balance Acquisition Consumption Final Balance
Qty Cost Qty Cost Qty Cost Qty Cost
3

Beg-
packer'
s 1,500 £120.00 1,320 £125.00 1,260 £130.00 1,440 £125.00
Single-
bed
room 2,000 £145.00 1,680 £165.00 1,480 £170.00 1,800 £150.00
Double
-bed
room 2,200 £320.00 1,980 £325.00 1,490 £330.00 1,710 £325.00
restaur
ant 1,800 £330.50 1,460 £348.00 1,350 £350.00 1,690 £332.50
bunk
bed 1,000 £395.00 945 £410.00 932 £420.00 987 £405.00
£1,310.5
0
£1,373.0
0
£1,400.0
0 7,627
£1,337.5
0
Depreciation Schedule
DEPRECIATION SCHEDULE
Year 1 Year 2 Year 3 Year 4 Year 5
Gross Asset £50,000.00 £65,000.00 £78,000.00 £86,000.00 £95,000.00
Depreciation of the Year £15,000.00 £16,500.00 £18,000.00 £22,300.00 £23,200.00
Accumulated Depreciation £1,500.00 £1,200.00 £1,400.00 £2,100.00 £2,200.00
Net Asset Value £33,500.00 £47,300.00 £58,600.00 £61,600.00 £69,600.00
LOAN SCHEDULE
Year 1 Year 2 Year 3 Year 4 Year 5
Initial Loan Balance £12,500,000 £14,850,000 £18,650,000 £20,250,000 £23,560,000
4

.00 .00 .00 .00 .00
Amortizarion of the Year £456,000.00 £358,000.00 £486,000.00 £500,000.00 £600,000.00
Final Bank Loan £105,000.00 £110,000.00 £120,000.00 £125,000.00 £130,000.00
Interst Charges for the Year £205,000.00 £312,500.00 £565,000.00 £583,000.00 £622,000.00
Forecasted Cash flow statement
Year 1 Year 2 Year 3
CASH FLOW STATEMENT
Initi
al
Bal
anc
e
£350,000,000.0
0
£470,239,000.0
0
£794,298,500.
00
Cas
h In
Revenues
£110,000,000.0
0
£285,600,000.0
0
£336,800,000.
00
Capital Stock £85,000,000.00 £88,000,000.00
£92,000,000.0
0
Business Loan £12,500,000.00 £14,850,000.00
£18,650,000.0
0
Other £4,000,000.00 £4,980,000.00 £5,225,000.00
Tot
al
Cas
h In
£211,500,000.0
0
£393,430,000.0
0
£452,675,000.
00
Cas
h
5

Out
Products £12,800,000.00 £1,800,000.00 £2,980,000.00
Products £14,500,000.00 £2,650,000.00 £3,860,000.00
Fixed Assets £4,500,000.00 £5,200,000.00 £7,850,000.00
Salaries £55,000,000.00 £55,000,000.00
£55,000,000.0
0
Rent £2,600,000.00 £2,600,000.00 £2,600,000.00
Amortization of
Loan £456,000.00 £358,000.00 £486,000.00
Interest Charges £205,000.00 £312,500.00 £565,000.00
Taxes £1,200,000.00 £1,450,000.00 £1,650,000.00
Tot
al
Cas
h
Out £91,261,000.00 £69,370,500.00
£74,991,000.0
0
CA
SH
FL
OW
£470,239,000.0
0
£794,298,500.0
0
£1,171,982,50
0.00
Forecasted Income statement
Year 1 Year 2 Year 3
Income Statement
Rev
enu
es
£110,000,000.0
0
£285,600,000.0
0
£336,800,000.
00
6

Cos
t of
Goo
ds
Sol
d £4,000,000.00 £4,500,000.00 £5,200,000.00
Gro
ss
Prof
it
£106,000,000.0
0
£281,100,000.0
0
£331,600,000.
00
Sala
ries £55,000,000.00 £55,000,000.00
£55,000,000.0
0
Ren
t £2,600,000.00 £2,600,000.00 £2,600,000.00
Ope
rati
onal
Prof
it £48,400,000.00
£223,500,000.0
0
£274,000,000.
00
Inte
rest
Cha
rges £205,000.00 £312,500.00 £565,000.00
Dep
reci
atio
£15,000.00 £18,000.00 £23,200.00
7

n
Oth
er £12,000.00 £14,000.00 £16,000.00
EB
T £48,168,000.00
£223,155,500.0
0
£273,395,800.
00
Tax
es £1,200,000.00 £1,450,000.00 £1,650,000.00
Net
Prof
it £46,968,000.00
£221,705,500.0
0
£271,745,800.
00
Forecasted financial position
BALANCE SHEET
ASSETS LIABILITIES AND EQUITY
C
ur
re
nt
As
set
s
C
ur
re
nt
Li
ab
ili
tie
s
Cash
£470,23
9,000.00
£794,29
8,500.00
£1,171,9
82,500.0
0
Sh
8

or
t
Te
r
m
Li
ab
ili
tie
s
Inventory
£7,080,7
10.00
£9,159,0
18.00
£10,201,
112.50
Bank
Loans
£105,00
0.00
£110,00
0.00
£120,00
0.00
Accounts
Payable
£333,56
3,210.00
£479,62
9,418.00
£803,09
3,212.50
Accounts
Receivable
£250,00
0.00
£520,00
0.00
£680,00
0.00
T
ot
al
Sh
or
t
Te
r
m
Li
ab
ili
tie
s
£333,66
8,210.00
£479,73
9,418.00
£803,21
3,212.50
To £477,56 £803,97 £1,182,8
9

tal
C
ur
re
nt
As
set
s 9,710.00 7,518.00
63,612.5
0
M
/L
Te
r
m
Li
ab
ili
tie
s
Fi
xe
d
As
set
s
Bank
Loans
£12,500,
000.00
£14,850,
000.00
£18,650,
000.00
Gross
Assets
£50,000.
00
£78,000.
00
£95,000.
00 Other
£4,000,0
00.00
£4,980,0
00.00
£5,225,0
00.00
Depreciatio
n of the
year
£15,000.
00
£18,000.
00
£23,200.
00
Accumulat
ed
£1,500.0
0
£1,400.0
0
£2,200.0
0
T
ot
£16,500,
000.00
£19,830,
000.00
£23,875,
000.00
10

Depreciatio
n
al
M
/L
Te
r
m
Li
ab
ili
tie
s
Net Fixed
Assets
£4,500,0
00.00
£5,200,0
00.00
£7,850,0
00.00
To
tal
Fi
xe
d
As
set
s
£4,566,5
00.00
£5,297,4
00.00
£7,970,4
00.00
T
ot
al
Li
ab
ili
tie
s
£350,16
8,210.00
£499,56
9,418.00
£827,08
8,212.50
E
qu
ity
Capital
Stock
£85,000,
000.00
£88,000,
000.00
£92,000,
000.00
Akroush
,
M
.
Retained
Eranings
£46,968,
000.00
£221,70
5,500.00
£271,74
5,800.00
11

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18

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CHAPTER 4
Suitability of new product and service
The analysis is need to be done in order to carried out business operation effectively.
With the help of internal and external analysis the various thing in firm can be identified in
proper manner (Aschauer, 2010). This five separate forces define the extent of competition in the
industry. There are various kinds of factors which is defined in the following manner as are-
1. Rivalries among the existing firm- in this it can be stated that the rivalries among the
hostel business are on the high level it is happened due to cost factor. In UK there are
various number of the rivalries in the market. There are various hostels which is
providing good services at the lower cost (Bellur, McNamara and Prokop, 2015). Thus,
the smart hostel came with the innovation as shared accommodation it is one of the
effective service to customers.
2. Threat of substitute- The one of the major issue in this relation is that there is high
chance in order to start the new business in the market. In this manner it is very essential
to provide innovation services to the customers so that they are able to attract the
customers. With the help of technological advancement like online application to reach
19

wide number of customer will be helpful to have enhancement in the profitability and
productivity (Beritelli, Strobl and Peters, 2013). In order to cope up with this they need to
offer services to customer in the affordable manner.
3. Bargaining power of buyers- The activities of smart hostel is need to be produce on the
online application so that customer can get attracted towards its services. Due to
increment in the bargaining power of the customer the firm need to provide economical
services to the buyers (Capacci, Scorcu and Vici, 2015). They need to target the customer
between the age of 18 to 35, with the help of this they are able to predicts the ability in
relation to elimination of bargaining power to intermediaries. Thus, it can be said that
when the customer attracts the firm it deeply impresses the other customer and in this
way firm can able to earn maximum amount of market share.
4. Barrier to entry- The one the major and vital barrier in this relation is differentiation.
The firm who can positively differentiate its services in the manner of amenities,
accommodation facilities, check in rule system and other kind of activities will be helpful
in order to create the differed image in the eyes of the customers. In the case of hostel
services the customer can easily change their preference. With the help of providing the
better services they are able to create the competitive advantage in market (Chang and
Zee, 2013). The innovative services to the customer will be barrier to take enter of other
rivalries in the market.
5. Bargaining power of suppliers- In order to provide effective services to the customer,
the employees palsy the major role. Thus, it can be said that the employees are the major
supplier to the firm, as they are only responsible in relation to provide the effective
services to the clients. In addition to this it is essential to provide effective services to the
client (Cheng and Wu, 2015). The excellent staff attract the customer to the market. The
smart hostel need to hire the skilled employees so that they are able provide best services
to customer in the market. Thus, it can be said that ye skilled employees will always
bring prosperity to the firm activities.
6. Bargaining power of buyers- The activities of smart hostel is need to be produce on the
SWOT ANALYSIS
It is need to be conducted in order to analysis the company position in the market and it is
defined in the following manner as are-
20

Strength-
 Cheaper accommodation- the smart hostel is providing the facility like rent
accommodation services and it is very cheaper, it is attracting the major number of
customer in the market.
 Safe environment- Student can feel safe after knowing that they are professional in order
to provide the service and they also provide safe housing opportunity.
 Innovative business idea- The smart hostel providing the share accommodation services
to clients so that they are able to live in the safe environment. It is also helpful in order to
have budgetary services (Bellur, McNamara and Prokop, 2015).
 Low cost set up- They are also providing it services with the help of online application as
backpackers panda, so that they are able to attract the customer in the market. The online
source is the most minimal and effective set up.
Weakness-
 No reputation- It is the new start up company in the market, in order to develop the
reputation in the market they need to take various initiatives to satisfied customers.
 The Smart hostel is developing his business chain in the area which are close to the
universities and travel areas, this is one of the attractive things in relation to impress the
customer in the market (Beritelli, Strobl and Peters, 2013). With the help of this they are
able to attract the customer in the market.
Opportunities-
 International students- In UK there are number of the student comes to have further study
and various traveller's comes to capture the beauty of UK. In London there are number of
location which are attracting the major number of the customers. There are number of
universities in which student can study (Capacci, Scorcu and Vici, 2015). This kind of the
things are major source of attraction. Thus, it can be said that there is large number of
universities in UK, in this way large number of student are seeking for the
accommodation.
 The most of the student are need to provide the services at the rental cost so that they can
live in the comfortable manner.
Threats-
21

Rental agencies- In this it can be said that these agencies are well established and
professional and have good reputations with clients, thus in order to cope up with this they need
to provide innovative services so that business activities can grow in market effectively.
Private rentals: In this it can be said that Private rentals are able to rent their
accommodation without any kind of the fees. This kind of rentals may also provide services such
as internet, water and general maintenance. These all are the major source of attraction to the
clients.
CHAPTER 5
PESTLE analysis on development of product and services
This is helpful in order to analysis the external condition of the firm and it will be helpful
in order to reach large number of customer in the market. These sis define in the following
manner as are-
Political- At the time when strategies was implementing, the political factors are having the huge
effect on the regulation of firms. The smart hostel is developing their business plan in term to
provide share accommodation services, this will be helpful in order to reach large number of
customer in the market. The certain political factors has huge impact on the operation of firm.
Economical factor- Due to recession the firm is unable to provide development services. The
cost effective services will be helpful to attract the large number of customer in the market. Thus,
the firm need to take various initiatives in order to provide satisfactory services to customer in
relation accommodation facilities in the affordable cost.
Social- The one of the main disadvantage about the hostel business is that in UK there are
various hostels, which are taking initiative in order to provide effective services. Increasing in
the use of social media will be helpful to gain information about the product and services.
Technological- The technological advancement is very essential in order to have growth of firm
in large manner. Innovation is a process which is helpful to generate large amount of profitability
and productivity.
CONCLUSION
Based on the above report it can be concluded that hospitality management plays vital
role in order to provide the best accommodation services to individual. The main aim is to
22

provide improved hospitality services to the guest. This is one of most established industry in the
world. The report has covered the following activities as are development plan, feasibility plan,
SWOT, PESTLE. This will be helpful in relation to draw business activities in the effective
manner. They are offering services as self check in system thus, it is helpful in order to have
increment in customer satisfaction. In this the customers are need to be targetted between the age
of 18 to 35, it is specially for student from school and universities.
23