Resort Management: Plan for Establishment of a New Subsidiary in Canberra

This report formulates a plan for the establishment of a second subsidiary of an already existing branch of “Retreat at Wisemans” located in Sydney. The new subsidiary is to be situated in Canberra as it is close to Sydney and is the capital of Australia. The paper discusses the marketing of the new branch, the location of the resort and the services that will be provided to the visitors. Further, the plan also provides the organisational and operational structure. It also formulates the environmental and financial feasibility of the resort project.

Running head: RESORT MANAGEMENT
Resort management
Name of the Student
Name of the University
Author Note

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Executive Summary:
Resort establishment and management is one of the concepts of the hospitality industry that has
been long under study. Some resorts are established over decades and some are pragmatically
planned for the shorter run. This report formulates a plan for the establishment of a second
subsidiary of an already existing branch of “Retreat at Wisemans” located in Sydney. The new
subsidiary is to be situated in Canberra as it is close to Sydney and is the capital of Australia. The
paper discusses the marketing of the new branch, the location of the resort and the services that
will be provided to the visitors. Further, the plan also provides the organisational and operational
structure. It also formulates the environmental and financial feasibility of the resort project.

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Table of Contents
Executive Summary:........................................................................................................................1
Introduction......................................................................................................................................3
Resorts and Resort Concept.............................................................................................................3
Location...........................................................................................................................................4
Issues to be considered in the planning and development process..................................................5
Target market segments...................................................................................................................6
Marketing Activities........................................................................................................................7
Provision of recreational amenities and activities...........................................................................8
Provision of other products and services.........................................................................................9
Planning and design of a guest activity program relevant to target markets...................................9
Meeting guest expectations of service...........................................................................................10
Organisational and operational structure.......................................................................................11
Risk management planning............................................................................................................13
Long-term sustainability................................................................................................................15
References......................................................................................................................................16

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Introduction
The concept of resort development has no definite or specific theories and has evolved
over the ages. It is only gradually that resorts develop over a period of many years into a legacy
and in other cases the entrepreneurs make deliberate and calculated efforts to develop these
resorts. The chosen resort whose subsidiary is to be built in this case is “Retreat at Wisemans”
("Hawkesbury River Accommodation | Retreat at Wisemans", 2018)It is one of the top twenty
one resorts operating in Australia at the moment and has immense potential in terms of
broadening of customer base and expansion into other cities of Australia. This report develops
and proposes an in-depth analysis of the various variables, strategies and techniques that need o
be implemented for building of the subsidiary of the already existing resort in another city within
Australia. The concepts of target market, sustainability and marketing will also be analysed in
detail.
Resorts and Resort Concept
A resort can essentially and in a broad way be described as a place with an aesthetic and
comfortable environment with enhanced options of recreation and relaxation (Ahn & Back,
2018). The recreational facilities and activities are provided to consumers at a particular fee or
compensation. The major elements of any resort include recreational facilities, housing and food-
beverage services and recreational facilities and aactivities to keep guests engaged and occupied
in a comfortable and relaxing environment. The concept behind the expansion of Retreat at
Wisemans involves increase in the business capacity and re-investment of the profits generated
till date for the same process. The subsidiary will be built in Canberra and the facilities and

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options of recreation provided will be replicated like the first resort as this resort has been able to
accrue a lot of economic growth and recognition. Retreat at Wisemans has been able to gain
popularity for its professional services like conference halls, availability of plenty of rooms and
an extensive golfing area. Further, the resort has been awarded for the facilities it provides for
weddings and other such ceremonies. The idea behind this report is primarily to expand into
Canberra and focus on the opportunities of conference and meetings. As it is the capital of
Australia, the resort will primarily try to focus on professional and commercial uses like
conferences, events, meetings and even personal ceremonies. The concept is to vehemently focus
on the strengths of the resort built so far. This will help in gaining a larger share of the target as
compared to building the resort without this specialised service. It will also help the firm to cater
to the already perceived expectations of the consumers as well as grow at a faster rate.
Location
As mentioned in the preceding section of the report the chosen resort for expansion into
the Australian market is the city of Canberra. It is the capital of Australia and houses some of the
most important heritage sites of Australia. It is known as the culture capital of Australia. The
tourists visiting Australia for any reason whatsoever will be compelled to spend time in this city.
This is so because tourists tend to explore the various galleries and museums of historical
importance. Further, Canberra as an Australian city also has a vehement creative flair and
tourists are also generally attracted to the local markets and creative festivals and carnivals
("Transport Connectivity – Parliament of Australia", 2018). The top attractions of the city like
the Australian War Memorial, New Parliament House, Museum of Australian Democracy at Old
Parliament House, Lake Burley Griffin, National Gallery of Australia and National Portrait

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Gallery of Australia will serve as added causes of increased tourist visits in the city (Duval,
2016). These factors in turn contributes to Canberra being one of the best places and locations
where the resort can be established. Further, the city is located at a distance of 280 km from
Sydney towards the south-west of Sydney which will make it easier for the authorities and
ownership of the resort to expand easily into the city with minimal costs of transport. As the
resort owners are looking to team up with groups of investors to expand and cater to the
emerging and changing demand trends if the consumers, this is the best location where the resort
can be established and potential enhancements can be done.
Issues to be considered in the planning and development process
The resort planning and development process includes the assessment of a number of
factors that will impact the success of the operations of the resort in the long run. The market
assessment and product assessment as to the type, size, feasibility of the selected site and
conceptual planning steps are the most crucial steps of the planning process. The other issues that
need to be studied in depth during the development and planning process include studying the
relationships including degree of site accessibility, analysis of the carrying capacity of the resort
size, the amount of regional integration in that place and a study of the relationships existing on
the community of the site under consideration. A very detailed study if the relationship between
the resort and the regional community is performed following which an intensive study of the
environmental impact and the estimated economic returns are also analysed. This step forms the
basis of the entire developmental plan.
In the context of size and capacity of the upcoming resort, it will be in proportion to the
already existing resort situated in Sydney. It will be spread over a land holding area of eighteen

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hectares along with adjacent development land for future expansion based on the response in the
first few years from the target market consumers.
Further, in the context of regional cultural integration between the location culture and
the resort, the resort will be developed with infrastructure and service options that will
incorporate the authentic culture and heritage of Canberra. The natural environment surrounding
the resort will also be aesthetic as the resort will be situated in the midst of Tidbinbilla hills. The
area within the resort will e designed and innovated with pools, golf clubs and gardens so that the
culture of the city is held within the resort in the best way possible.
In the context of connectivity issues in Canberra that needs to be assessed, Canberra is
reportedly one of the best connected cities in Australia with an airport connectivity growth rate
of about 7.9%. Canberra is also reported to have the highest connectivity via road transport
options both in the urban and suburban contexts. Further, increasing options are being availed by
the Government of Australia to increase the connectivity by rail and air in between Sydney and
Canberra. Canberra however has a very small port and hence the connectivity by port is really
low.
Target market segments
The target market of any resort operating in the hospitality industry is based on a number
of factors and variables. These include demographics, average income rates of the citizens,
duration for which the resorts have been established and have been operating, the exchange rates
of countries from where majority of the tourists arrive and most importantly the tastes and
preferences of the visitors (Dolnicar & Leisch, 2017). In the context of demography there are
majorly four groups of tourists which are tasters, the beginners, the regulars and the honeymoon

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tourists. The target market should also be decided based on the resort life cycle. In this particular
case, the prices of the already existing resort options include packages within the price range of
$210 and $305. The same range of prices will also be applicable for the new subsidiary being
established in Canberra. Essentially the entire cohort of consumers will be divided into two
groups, the architecture admirers and the gourmet grazers. The first group of consumers will
include tourists who are visiting primarily for educational or leisure purposes. This group will be
interested in trying out different activities and getting to know the place. The second group will
comprise of tourists who are travelling for business or professional purposes and are interested in
the infrastructural and networking features of the resort and its location. Further, from the
demographic point of view, there is no specific age group for the visitors and tourists who can
visit and avail the services of the resort at large.
Marketing Activities
The marketing activities that will be undertaken for the promotion of this resort are
enlisted and explained with the help of the price, product, place and promotion strategies
mentioned below:
The price of the product as mentioned in the preceding section is going to be in the range
of $210 and $305 just like the existing price brand in the already existing branch of Retreat at
Wisemans at Sydney. This is so because the standard of living and the reap price levels in the
two cities do not differ much.
The products and services include various packages provided by the resort like superior
rooms including breakfast packages, superior rooms, standard rooms, family rooms and spa
suites (Bowie et al., 2016). Apart from this, the other services provided by the firm include golf

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courses, tennis playing services, pool services, orchard gardens, personalised spa and cuisine
services and even tours for the first time visitors. For the visitors and travellers visiting for
professional and business purposes, the resort will be providing conference rooms which will be
furnished with the best quality equipments needed for conducting meetings and conferences. The
hotel will also be providing transport facilities both under normal circumstances and enhanced
transport services in case of emergencies.
The places of promotion include the cities of Sydney (where there is already a branch of
the resort) and Canberra (where the new subsidiary of the resort is being proposed to be built).
The resort will also be promoted across other cities of Australia. The promotional techniques to
be used include the use of online social media platforms like Facebook and Instagram. The
promotional activities in the form of discounts and promotional competitions and activities to be
hosted inside the premises of Retreat at Wisemans, Sydney will also be held and published on
the website of the resort. This will ensure maximum reach of the upcoming venture with least
costs incurred. Further, the promotional events will also be held within the premises of the
Sydney branch so that there are no major resources and implementation costs involved.
Provision of recreational amenities and activities
Just like the already operating and existing branch of Retreat at Wisemans, a variety of
recreational activities and options will be provided in the new upcoming subsidiary too . Some of
these recreational facilities and activities to be provided in the form of services by Retreat at
Wisemans are provided in detail as follows:
As the resort has already won multiple awards for its services in the field of wedding
venues, the new subsidiary will also be providing the same services and will in fact try to provide

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services of better and enhanced quality so that the new visitors are able to accrue greater
experiences in terms of satisfaction (Kirilina, Kolesnikova & Kolesnikov, 2016).
Secondly, there will also be recreational facilities in the form of games rooms and
different sections of the outdoor area of the resort will be divided for different sorts of sports
facilities. This will help in keeping people engaged and help them to find time to relax and enjoy.
Among these facilities and services the most important and large one in terms of infrastructure
will be the golf club and golf playing packages. Among the others there will be tennis,
badminton and even cricket areas.
Finally, there will also be the infrastructural facilities for holding extensive conferences,
meeting or other business events. Further, these facilities could also be used for other purposes
like industrial shows or get together.
Provision of other products and services
The other forms of recreational activities will include spa and salon facilities. This will
greatly help the tourists in de-stressing and enable them to relax (Wirtz & Lovelock, 2017).
These opportunities will be provided in the form of packages and discount options will also be
provided. There will also be the options of buying exclusive merchandise and personalized
items from the retails hops built within the spa. There will also be the facilities of pools (both
indoors as well as outdoors) and multi-cuisine restaurants where personalized as well as
authentic dishes will be available. There will also be options of free wifi and other connectivity
facilities will be provided.
Planning and design of a guest activity program relevant to target markets

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Planning and programming during a guest activity in a resort involves conducting
activities within the resort to keep the tourists engaged and use the space within the resort in an
interconnected manner so that the programs being conducted are successful (Getz & Page, 2016).
For the promotion of this particular resort, the events in the form of discounted packages
promotion and cuisine festivals will be organised. Further various cultural and traditional theme
based events and carnivals will be organised. The winners of such contests will be provided with
special packages. This will be done in partnerships with tourism agents and partners already
existing. The duration of these programmes will be for the first six months. Further in the first
entire year. After the establishment of the resort, for one whole year, exclusive merchandise and
royalties will also be provided to the customers. One event that will be held for the guests to
attract customers is “Boat Paddling Race”, the details of which are mentioned below:
Name of Competition Boat Paddling Race
Venue The outdoor premises of Retreat at Wisemans
Cost $1000 (including the presents and free
merchandise provided)
Duration 1st week of opening of the resort
Table 1: Particulars of Event
Source: Self-made
Meeting guest expectations of service

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This is the most important part of establishing the good will and market power for the resort
business. To cater to the changing demand trends and preferences of the customers it is very
important to install and use disruptive business models and smart devices to gather, synthesise
and analyse information related to the preferences of the visitors in the hospitality sector for past
few years. Essentially, the initiatives taken further to provide the best quality services to the
consumers will include the following:
 Creating best experiences by adhering to the industry standards
 Identifying and exceeding the client expectations
 Tracking, monitoring and improving the performance of the various teams working in the
different sectors of the resort
 Adhering to the policies of the consumers
 Communicating actively with the visitors and using their feedbacks to improve the
quality of services
Organisational and operational structure
The operational structure of the resort will comprised of primarily seven departments to cater
to the various operational systems of the entire resort. These are:
 Engineering Department
 Security Department
 Human Resource Department
 Housekeeping Department
 Food and Beverages Department
 Front Office Department

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 Accounting Department
The organisational structure of the resort will consist of General Managers, Assistant
Managers, Deputy Assistant Managers, Managerial heads of every department mentioned in the
operational structure, accountants, cashiers, assistants, chefs, waiters, drivers, valet parking
employees and front desk agents (Migdal, 2015).
Further, the organisational structure of the firm should be such that it is flexible in the sense
that the employees including the managers can easily adapt to changes that might occur in the
structure (Waddell et al., 2016). The entire structure can be broadly divided into three smaller
structures which are mentioned and discussed shortly below:
 The top level consisting of the directors and the managers. They will be responsible
for all the important decision making procedures. It will solely be their responsibility
to make use of informed decision making for the employees performing and working
under them. They are the highest authority for ensuring that the clients and visitors
are provided with the best quality of services.
 The middle level resort management which will be responsible for looking after the
operations of the resort on an everyday basis. This level will consist of the assistant
managers and human resources managers (Ladkin & Kichuk, 2017). Their primary
responsibility will be to distribute work among the employees performing under them
efficiently so that productivity of the resort as a whole is maximised. They will also
be responsible for providing workshops and trainings to the employees and managing
their salaries and compensations.

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 The lower level of resort management will consist of the employees who are directly
responsible for providing their services to the customers and also interacting with
them. These positions include those of drivers, chefs, front office, house keeping staff
and valet.
Risk management planning
Risk management in any context involves the use of practices and policies to ensure that
the total risks facing the firm is either reduced or completely eliminated (Dunn, Calkin, &
Thompson, 2017). In the hospitality industry, this is very important as the firms will solely be
responsible for ensuring the safety and security of the employees as well as the visitors (Mason,
2015). Hence the resort will ensure compliance to the rules and regulations regarding safety and
security maintained in the Australian hospitality industry and also the procedures of the
government. It is the responsibility of the authorities to ensure processes of screening the driving
licenses of the drivers as the resort will also provide transportation services to the clients. The
tour operators should also adhere to the rules in place. The resort should look after provisions of
CCTV cameras, emergency exists, fire extinguishers and evacuation plots in its infrastructure.
Commercial issues and viability
Sources of Capital
Owners' Investment (name & % ownership)
Your name & % ownership
$
50,000
Other Investor 15,000
Other Investor 1,500
Other Investor -
Total Investment $

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66,500
Bank Loans
Bank 1
$
10,000
Bank 2 -
Bank 3 -
Bank 4 -
Total Bank Loans
$
10,000
Other Loans
Source 1
$
-
Source 2 -
Total Other Loans
$
-
Summary Statement
Sources of Capital
Owners' and Other Investments
$
95,000
Bank Loans 10,000
Other Loans -
Total Source of Funds
$
105,00
0
Startup Expenses
Security
$
29,000
Leasehold Improvements 3,200
Capital Equipment 10,000
Location / Admin Expenses 9,500
Opening Inventory -
Advertising / Promo Expenses 6,000
Other Expenses

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50,000
Total Startup Expenses
$
317,70
0
Table 2: Budget
Source: Self- made
Long-term sustainability
It is also the responsibility of the resort to ensure that the resort operates sustainably in
the long run. This will ensure that it caters to its corporate social responsibilities and provides for
the community it is serving. For this the firm will ensure that the Environmental Impact
Assessment (EIA) for the project is carried out and that the building of the resort does not harm
the livelihoods of the local people residing there (Deng et al., 2014). The resort managers will
take all steps to provide holistic growth of the employees as well as the community of Canberra.

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