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Homestay

Over the decades, tourism has experienced a continuous growth and increasing diversification to become one of the fastest growing economic sectors in the world. The tourism sector can be considered an important driving force of economic development. Many developing countries recently ranked tourism high in their national sustainable development. One of the countries actively stimulating its tourism industry is the India. Homestay program have been a successful tool to increase tourism visitation and broaden accommodation options in poorer rural communities. Homestays is clean traditional houses with basic amenities and unforgettable experience to the guest which they cannot get even in the most expensive of hotels and resorts in the world.

layers background

Proposed Project Homestay

Capacity of the Plant/Unit (at 100% capacity utilization)

70

Year wise capacity utilization

Year

70%

Year

75%

Year

80%

Year

85%

Year

90%

Final Product

Homestay

Infrastructure and Equipments Required

Building

Land

Refrigerator

Utensils and Crockery set

Employment Generation

2 House-keepers

Project Cost (subject to respective DPR) In Lakhs

Land and Site Development Cost	0.50
Civil works and Buildings	30.24
Equipment	3.20
Miscellaneous Fixed Assets	2.90
D.G. SET	1.25
Escalation & Contingencies (5% on construction costs)	1.90
Preliminary & Preoperative Expenses	2.58
Sub-total (A)	42.57
Total Working Capital Requirement (Lump sum) (B)	0.50
Total Project Cost	43.07

Means of Finance In Lakhs

	Amount
TERM LOAN (60% of A)	25.54
Term Loan	25.54
Equity	17.53
Total Funds Required(A+B)	43.07

Financial Benchmarks

	Year	Year	Year	Year	Year
Target Revenue	40.12	40.12	40.12	40.12	40.12
Break Even Point	34%	29%	26%	23%	20%
DSCR including Principal Repayment	2.34	2.70	3.11	3.58	4.12

Basic Assumptions

Power Rate Per Unit	8.5 Rs./Unit
Power Requirement	16800 Kwh
Interest Rate Assumed	8.50%
Repayment Period	6 Months Moratorium and 7 years repayment.

Others

Training Institutes	N.A.
Whether the service is in the Negative list under NEIDS and MSME?	No

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