УДК: 338.481(083.94)(574)
PROJECT
INNOVATIONAL TOURISM PRODUCT
«TENGRI»
Makhanbetov Ulanbek Torebekuly
Student
Eurasian National University named after L.N. Gumilyov
Astana, Kazakhstan
1
Contents
Executive summary__________________________________________3
Research base_______________________________________________3
Innovative program “Tengri trips” ______________________________7
The uniqueness of the project__________________________________9
Marketing strategy__________________________________________10
5 forces analysis____________________________________________10
SWOT-analys______________________________________________12
Consumer_________________________________________________13
Scenario of development tourism product and brand "Tengri" for 10
years__________________________________________________________13
Plan of producing___________________________________________15
Finances__________________________________________________17
Main competitors____________________________________________21
Risk management___________________________________________21
References________________________________________________23
Annotation________________________________________________24
2
Executive Summary
In age of globalization tourism industry is gaining tremendous momentum.
Nowadays people have many options where to travel. The problem is that old
types of mass tourism became monotonous and outdated for many travellers.
Kazakhstan is a rapidly growing country with economy based mainly on raw
materials exports. Tourism is hugely underestimated sector for growth in our
country.
Given project is a well-known tourist destination, located in historic and cultural
centre of Kazakhstan. It is called Turkestan. “Tengri”- is the idea to recreate
everyday life of nomadic people from the ancient times. We will represent the
life and culture of Turkic nomadic tribes in 10-12th centuries on 40 acres of land.
This will attract tourists as an exotic, historic area with high quality service and
a full engagement to the days of ancient Silk Road.
The benefits of the project are clearly seen. Tourism industry has 9% of global
GDP.Kazakhstan is among top 30 countries in the world with wide range of
potential tourist destinations.
The goal of this project is to develop key aspects of the current product for
further implementation in Kazakhstan. Also we should consider possible risks
associated with its realization.
Initial cost of start-up of the project is $414,125, with payback period of three
months. The implementation of this idea into life will positively impact on the
country’s balance of trade. The attraction of foreign direct investments will rise.
Research base
“There is an ancient city in the desert,
The Eternal City - Turkestan, You treasure the east,
You east mascot...”
Mardan Hasanov
As a consequence of research that was done we can conclude that the
region is attractive as a tourist destination. Turkestan is one of the oldest cities
on the Silk Road. It is very sacred place for Muslims. There are many holy
places such as the Mausoleum of Khoja Ahmed Yassaui Arystan Baba, AishaBibi, Babaji Khatun, Karahan and the ancient city of Otrar. The Turkestan is
1500 years old. It is one of the historical and cultural centres which are well
known all over the world as one of the ancient architectural complex.
The future tourist complex will be allocated nearby of this historic towns
and mausoleums.
3
The research of the historical archives of ancient libraries of Turkestan found an
interesting map of West Turkestan. The name of this map, which was done by
British, was “Independent Tataria”. We can us the logo from this map for our
“Tengri”-project. The ancient Turkestan country was equal to two fifth of
European part of Russia. It consisted of five regions: Trans-Caspian, Syrdarya,
Samarkand, Fergana and Semirechensk and two khanates (kingdoms) of Khiva
and Bukhara. The political power of khanates was limited. (1) Moreover
Turkestan was the capital of the Turkic nations. According to survey in
countries like – Uzbekistan, Kyrgyzstan, Azerbaijan, Turkey, Turkmenistan and
Tatarstan and the same in others, and other autonomous republics with Turkic
roots, about 50% know the history of Turkestan, and 86% of people would like
to visit their historic homeland. (From the archives of the newspaper
"Kazakhstan Today")
Geographically, Turkestan is divided into two parts: the north western part of
lowlands and the south eastern part of mountains. Lowlands occupies more than
three fourth of the region. There are valleys in Turkestan area that are below not
only sea level but below the level of the Caspian Sea. The area is covered by
deserts and steppes in the north merging with the Kirghiz steppe region. On the
west lies and elevated plateau of Ust-Urt(180m) and a massive desert of Kara
Kum. Despite the difference in the height of all deserts the picture is the same.
This sandy beach yellow-reddish or red (Kyzyl Kum means "red sand"). Sands
or fixed form ridges and hills covered with sparse vegetation, or consist of, bare
quicksand, in which the wind pours sand dunes - crescent-shaped hills. [2]
During the mining works in the South Kazakhstan region it was found that the
mountain part of Turkestan is more extensive than of Caucasus and mountain
ranges are higher.
The mountain systems of Tien Shan, Pamir Altai and the Kopet dag constituting
the continuation of the Hindu Kush
The most extended mountains are Tien Shan system. It consisted of a series of
ridges, prolonged from east to west. The ridges called Ala-Tau which means
“motley mountains”. The total length is more than 2,000 miles. 1,500 of them
located in Russia with the maximum width of 300-400 miles. (3)
Tourists will be able to visit the mountains with a guide. The picture from the
highest point is beautiful. Each tourist will have opportunity to spend a
wonderful holidays. High quality service in blend with engagement to culture
and life of ancient nomads – all of these will be available.
Turkestan is very rich in historical sites and mausoleums. The heritage of more
than 17 centuries of Turkic nations is held here.
The mausoleum of Khoja Ahmed Yassaui is a masterpiece of medieval
architecture. This is an amazing complex of palaces and temples of the 30
different rooms and halls. The external diameter of the main dome is more than
40 metres, circumference – 130 metres, the height of the minarets – 12 metres.
The building is full of impressive décor and colourful mosaic. Mausoleum is in
4
the World Heritage List by UNESCO. It was built by the order of Timur khan
1399. This building stood for 233 years and now it is under protection of
government, which, carefully protecting it from destruction, makes everything
possible to keep this jewel of medieval East.(4)
Along with visiting the external side of the mausoleum, guests can visit the
Turkestan Historical and Cultural Museum-reserve “Azret Sultan”. Among
represented showpieces in the museum, special attention is needed for a unique
painted Arabic script and inlaid with gold and silver, bronze candlesticks, as
well as 4 of 6 fixtures of the mausoleum, two of which are stored in the Louvre
and the Hermitage.
In 30 km form Turkestan we can find excavations of the ancient city of Otyrar,
which was destroyed in the 15th century by Genghis khan. The first settlement
on the site Otyrar attributed to the II century BC. The ancient Otyrar was one of
the major trading centres in the Silk Road. It is famous for the Mint, a huge
library, not inferior to the most famous libraries of antiquity. The famous
medieval philosopher Al-Farabi was born here. At the end of the 13th century
Mongolian troops conquered a unique city and destroyed it. Nowadays everyone
who visited the holy lands of Turkestan can visit this ancient city. From 2001 to
2004, carried out comprehensive studies Otyrar under the auspices of UNESCO,
the Japan Trust Fund-Kazakhstan "Conservation and restoration of the ancient
Otrar". [2]
While visiting Otyrar the tourist will feel the civilization of the past and the
spirit of medieval warrior Genghis khan.
We found another interesting city which may attract tourists. It called Sauran.
According to historical data, Sauran was built by arabs in the 8-9th centuries. It
was one of the most famous architectural structures in 6th (????) centuries.
Sauran represents the great civilizations of the past. It was a masterpiece of time,
as modern historians say.
East bath- construction XVI-XVIII centuries. Now we can see reconstructed
version of it. It is located in 150 metres to the south of the khanaka Ahmed
Yasawi and consists of 9 rooms of different size, functionality and time of
construction. The old part consists of 7 rooms - a waiting room, covered with a
barrel vault "Balkhi" Washer main hall, 8-sided with 8-sided a brazier in the
center, rooms with tanks of hot and cold water, etc. In the "hot" room sufa wide
for massage [2].
Tourist will be able to enjoy themselves while swimming in the Hammam. The
staff will create friendly atmosphere for them.
According to research by the Center of Archaeology, the mausoleum Arystan
Bab is the largest landmart in Asia of 12-14th centuries. Arystan means lion. Sufi
said that Lion is in the meaning of Human Path. Holy Arystan Bab was a
legendary figure. According to legend he was one of the companions of the
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Prophet Muhammad, on whom be peace. By the legend he was a hero and a
master in gardening, and he taught Prophet how to manage gardens.(5)
In addition, we have the ancient town of Zhanakorgan, which located in 100
kilometres from the Turkestan. The results of work of team “Biochemists”
reported that the shores of lake Teresken are curative. Now, it is one of the
major medical centres which has no analogues in Kazakhstan.
The center includes a basic medical supplies - chloride, sodium sulphate silt
mud, its saline brine, which is used in the form of baths and mineral water for
indoor and outdoor use. which has no analogues in Kazakhstan. [6]
All places that was mentioned above are located near to the complex “Tengri”.
According to the programme, the tourists will be assigned one day to visit the
sites studied.
Historical sites represent ancient history of Asia and the world history at large.
After entering, tourists will be able to see architectural masterpieces of the past
centuries. Ancient cities represent nomadic civilizations, the spirit of warriors
like Alexander the Great and Genghis Khan. The guests will be participating in
life of past centuries. This feeling of being a part of the past cannot be expressed
in words. Such emotions can be felt only after visiting Turkestan.
One of the directions of the tourism product "Tengri" is extreme tourism. Which
implies a re-creation of the great battles, which will engage all the tourists, those
who brave enough will be able to be a part of a battles.
In this regard, we have done research about ancient battles and following
materials are from our research.
One of the major battles took place in 1660 between the Kazakhs and
Dzhungars. When Tauke Khan was not able to stop invasion of enemies from
east. The battle was so severe that no one was spared. The place of battle is in
Turkestan.
In 1219, Genghis Khan conquered Otyrar after six months of military
occupation. According to the results of the inspection of Otyrar area, it was
noticed that the ancient city has not changed much since the invasion, but the
restructuring was carried out in certain areas. But the most exciting is that the
tourists on arrival in this city can imagine fragments of the great battle to the
best of the ruins. (1)
Also in the book of V. Grigoriev we can find sufficient information about the
campaign of Alexander the Great in West Turkestan [7]
Period of the second World War.
The capital of the Turkic peoples in the Second World War was known as
Turkestan Legion. Turkestan Legion - the formation of the Wehrmacht during
the Second World War on the Eastern part of the legion of volunteers and
consisting of representatives of the Turkic peoples of the Soviet republics and
Central Asia (Kazakhs, Uzbeks, Turkmen, Kyrgyz, Uighurs, Tatars, Yakuts,
etc.). The main idea of combining Turkestan (the Turks of Turkestan and
Central Asia) and their struggle against the Soviet Union consisted of desire of
6
liberation. The sources of replenishment of the Turkestan Legion were the Red
Army prisoners of war, as well as immigrants and refugees who settled in
European countries and in Turkey, including the descendants of the
intelligentsia.
Mentioned battles are just few of what was throughout the history of Turkestan.
Innovative program “Tengri trips”
In the first minutes of the visit of the zone, everything that connects the tourist
with 21 century remain outside the perimeter (except: communication)
Tengri trips – is a program and the types of activities and recreation on offer for
tourists in the area of Tengri. Moreover Tengri provides travel trips and
excursions to historic buildings, mausoleums, and terrain.
• First day for the tourist will be adapted to the conditions of life of Turkic
people. Also guests will be instructed in horse and camels riding. Tourists will
be invited to learn about traditions and customs of people of Central Asia. The
scenes of ancient times will be shown every day.
• Archery, ancient traditions and customs, the art of war
all that can be trained by anyone.
• Games (kyz kuu, zhorga zharyse, kumis alu, kokpar, bayga, kures).
• Relaxation Zone - massage, swimming pools, spas, restaurants, health,
tennis.
• Healthy eating with wide range of types of food.
Dishes different turkish nations will provide healthy nutrition. Costumes and
stage performances with games will decorate unforgettable experience for
travellers.
The most important thing in this program, that will be recreated great battle,
which will cover all the tourists, and especially the brave can take part in them.
Those who like extreme will be able to ride horses and camel as a transport.
Training will be provided. Special guests will be able to use human carts.
Picture of the Mongol invasion, the Battle of Otrar and other military actions of
those times will be recreated. In addition, tourists will take part in simulated
wars (in a safe environment).
• Residents will be asked to stay in the hotels which made in style of the Middle
Ages, with high-class service. Our hotels will be of the highest international
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standard. There will be no differences in prices for rooms. The staff will be
trained to provide high quality service.
• Tourists can enjoy a Turkic bath, which includes 4 different types of steam
rooms and serves as the reservoir of pure spring river, located next to the bath.
• For those wishing to further explore the history and identity, and the same
language of the Turks, the opportunity of daily training for an hour a day will be
provided.
Also in this complex will include a sort of mini-aul(village), with the inhabitants
from ancient times, tourists will have the opportunity to go to visit them at
weddings and other events.
One of the main distinguishing features of this project is that the area Tengri will
have its own currency, at the same time with others. Currency will be a coin and
currency counterparts. In the Tengri area in addition to existing currency will be
introduced unique and freely convertible currency “Bori”
Tourists will be allocated in the city of Turkestan. They will have opportunity to
visit sacred places of ancient city. The Tengri Trips programme also will be
included.
Table 1. Tour of the holy places of Turkestan
Время
Род занятий
06:30
The entrance to the city of Turkestan.
07:00
Breakfast.
08:00
-A visit to the mausoleum
-Pilgrimage to the mausoleum
Қ.A.Yassaui.
-Visit the underground mosque.
-Review Hammam.
-Visit "zhұma" mosque.
-Walk to the Great Wall.
12:00-12:30
Visit to the mausoleum Gauһar-ana.
13:00-14:00
Lunch.
14:00-16:00
Arrival to Otyrar.
-Show battle scenes (the Mongol
invasion in 1219)
-Anyone can take part.
-Women as civilians.
-Men as warriors.
(The scene will be carried out in safe
conditions with provided preliminary
instructions)
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16:00-17:00
Arrival to the cave Zhylaғan-ata.
-Pilgrimage to the cave Zhylaғan-ata.
-Review of the nature of the local
mountains.
17:00- 18: 00
Arrival to the old town Sauran.
-Walk to the historical monuments of
the old Sauran, familiarity with the
story.
18: 00-19:00
arrival at the mausoleum of Ukash-ata.
-Pilgrimage to the mausoleum of
Ukash-ata, familiarity with the story.
Arrival in the city of Turkestan.
Dinner.
arrival in the zone "Tengri"
19:00-19:30
20:00-21:00
21:30
The uniqueness of the project
Wide steppes of Asia… the time of great battles and struggle of Turkic nations
to establish their identities. Caravan of Great Silk Road, everyday life of ancient
Asia at the time of khans, sultans, emperors and warriors. Tourists visit the
historic city will be plunge into middle age and will be able to experience life in
the style of 10-12 centuries.
Different cultures and customs will add flavour to unforgettable memories.
Masterpieces of architecture will open beauty of the ancient times.
The above description of the program “Tengri trips” is the main difference of
our project. We will apply combination of recreation and historical, cultural
aspect. This makes our project unique.
Uniqueness of the project is that it will benefit Kazakhstan tourism industry both
economically and culturally. Project can spark the interest for our culture in a
new way.
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Marketing Strategy
For purposes of this project the main directions of the marketing strategies will
be;
 Work with the agency network: In the agent's database will include all tour
agencies that have signed an agreement with us. Agents are provided with
all the necessary promotional material. Several times during the tourist
season one conducted study tours for members of the agency network.
This is the basis for the promotion of our product.
 Participation in trade fairs and meetings: The marketing department will
collect information on all the exhibitions and the (professional meetings)
and to select the most interesting exhibitions and meetings to take
participate in them. The exhibition provides an opportunity to attract the
attention of professionals and consumers as a national tourist product as a
whole and to the individual travel company with its commercial interests.
 Сreating a website: Promotion through website is one of the most
effective ways of marketing.
 Advertisement: This is mass media, billboards, radio, word of mouth. The
media will be filed with information about our product. Also in town
(center) will be posted billboards. From mouth to mouth will operate
mainly through travel agencies and the clients [8]
 Promotion of Brand: we can sign an agreement with airlines. We can
advertise our logo and other advertisement on the airlines equipment. For
example during flight, while customers having their lunch we can provide
them with mugs and chocolates with our logo.
Porter's Five Forces Analysis
-The threat of new competitors.
Certain barriers (patents, licenses) to enter this market does not exist. [9]
In the nearest time possible appear the following tour of services:
1. In Kyzyl-Orda region - tourism product on the lake Kambash.
Term of is not defined.
Clients - the population of Kazakhstan
2. East Kazakhstan region, tourism product supposed to place near the lake
Markakol at the foot of the Altai Mountains.
Term of is not defined.
Clients-the people of Kazakhstan, Russia, China and Mongolia
3. Aktau hotels and beaches in the Caspian Sea.
Term of is not defined.
Clients - the population of Kazakhstan and Central Asia [10]
Analysis: the tourism products that was mentioned above have many analogous
products such as Burabai and Kapchagai.
-The threat of substitute products.
10
It is possible to make a similar product within Kazakhstan in areas like South
Kazakhstan and Kyzylorda region. Nowadays these regions has no plans to
create tourist destination projects.(10)
Analysis: “Tengri trips” programme remains a novelty.
We need to protect “Tengri-trips” by copyright.
-The market power of consumers
The degree of risk is very low, because "Tengri", focuses its services to various
destinations (Turkic peoples, extreme sports enthusiasts, young researchers
crops, businessmen, elderly). Moreover this type of tourism is new. It should
also be emphasized affordable prices and discounts.
There is the possibility of competition from the Bukhara and Tashkent cities in
Uzbekistan.
Analysis: The possibility of the threat depends on the chosen travel destination.
But when monitoring their tourist market, did not reveal information about
creating analogue. [11]
-The market power of travel agencies
There are 500 travel agencies in Kazakhstan (12).
Currently registered in Kazakhstan, about 500 travel agencies [12]. But there are
shortage of tourist operators.
Analysis: In case of refusal of travel agencies to work with "Tengri" we may
enter into a contract with the nearest foreign travel agencies.
-The level of competition
At the moment, the market operates three tourist product, two of which provide
similar services during the implementation of "Tengri" competition will
increase, due to the involvement of customers. Usually other travel products will
reduce prices and provide additional services and expand PR base. It is also
worth noting that the tourism product "Tengri" will enter the international
market, where there are a lot of competitors, but due to the fact that product has
a distinctive services, competitors at niche will not meet.
Analysis: Due to initial uniqueness of “Tengri” product the level of competition
will not be noticeable. In the case of competition in the tourism product strategy
and provides a number of mechanisms to maintain and expand its customer
base.
11
SWOT-analysis
Table 2. Swot-Analysis
Strengths
Weaknesses
• Location (Most historic town Asia).
• Financing.
• Unique in this category of travel products.
• Far from airport
• Hotel in medieval style with modern service.
• The rich cultural and historical heritage (many
castles, fortresses, mausoleums).
• Differentiated types of tourism (extreme, learn, play,
relaxation area).
• Flexible pricing.
• Full imbed ability clients (10-12 century).
Opportunities
Threats
• Access to the world market.
• Expansion of the complex.
• Create a unique country with a great history.
•
Macroeconomic
factors as inflation and
so on
•
Political
factors
(customs and border
formalities).
• Declining revenues of
the people
12
Consumers
Geographic factors
Kazakhstan and Central Asia
countries (Uzbekistan,
Turkmenistan and so on). Some
republics of Russian federation.
Demographic factors
Youth (17-25) – students, young
researchers, those who loves
extreme
People in age from 25-47 –
businessmen, people who loves
history and culture
People who is going to retire in
age between 47-60- a) experts in
cultural and historic heritage
b) those who loves “emotional
extreme”
c)those who want to acquire new
knowledge
Scenario of development tourism product and brand "Tengri" for 10 years:
2013:
 Get a copyright in the program «Tengri trips». Qualify for means of
identification to the brand "Tengri"
 Search for investment - Government grants, private investors, investment
funds.
 Finding grants or investors.
 Sign the contracts
2014:
 Launch of innovative tourism product Tengri
 Construction of facilities
 creating a business in a form of Limited Liabilities Partnership
 Signing the Contract on cooperation with travel agencies
2015:
 marketing program
 first customers
13
 Investors receives first earnings
2016:
 Modernization of Program "Tengri trips»
 Brand name "Tengri" in the airline industry-Emirates, Virgin Airways,
British Airways, Turkish Airlines, Singapore Airlines, American Eagle
Airlines.
 Turkestan became the most visited tourist city in the Republic of
Kazakhstan
 An article from Forbes «Tengri is a window into the past of one of the
best times of ancient civilizations."
2017.
 Tourist product "Tengri" voted the best tourism products in Asia
 Expansion of the area of “Tengri” area
 The construction of two hotels (100 rooms each)
 increasing number of customers
 Article from the newspaper "Time" - "Due to the attractiveness of the
tourism product" Tengri "and the increase of tourists wanting to dip into
the past inflow of foreign exchange and taxes to the state budget has
doubled '
2018:
 Conclusions agreements with the following travel agencies;
 American travel service
 Royal Travel
 StarTour
 Construction on the territory of Turkestan Airport Class IV together with
the Akimat of the South Kazakhstan region.
2019:
 A new strategy for promoting the brand "Tengri"
2020:
 Creation of new complexes with new directions;
 Create complex "Tengri-honeymoon" for young families from all over the
world. "Tengri-honeymoon" provides a new and unique program.
 Create complex "Tengri - invalid" is intended for disabled 2 and 3 groups.
The complex includes a program that will create a disabled all the
necessary conditions for a meaningful and productive stay.
2021:
 The first customers in the "Tengri-honeymoon" and "Tengri - invalid".
 Increase in number of incoming tourists
2022:
 change the legal structure from LLP to JSC
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 To support the social infrastructure of the Republic of Kazakhstan, JSC
"Tengri" made a decision to conduct the charity program "Tengri
balapan." (Free tickets for children, under difficult circumstances)
 Registration know-how includes (program of "Tengri", providing services
and ideology)
2023:
 An innovative tourism product "Tengri" became one of the frequently
visited tourist sites in the world.
 Brand name "Tengri" recognized in the world (Plunge into the past and
remember the long history of their ancestors and still get a lot of emotion
and inspiration as well as a high-quality service)
 Transfer of know-how - China, Russia, Cyprus, Lithuania. That will build
a similar tourism products in their countries taking into account their
history and culture.
 Conditions; country, the organization, the individual has acquired the
know-how of JSC "Tengri" undertakes the bottom of of their brand or
logo on a mandatory basis to enter the label "Tengri".
 Creation of a corporate university «Tengri MBA» at JSC "Tengri".
Plan of producing
We need space about 40 hectares in Turkestan.
We need to build:
2 hotels
house for
staff
4 yurts
2 swimmin
pools
Zone for
relaxation and
games
The stage for
performances
Pastures
for animals
Bath
Kitchen
The cost of building is in table 6
15
Hotels will be in 2 types:
1. Modern hotel(5 stars)
2. Hotel in ancient style with high quality service
The process of preparation for recreation of battles of medieval:
•
•
•
•
experts[13]
Transport and communication
Create a website
Agreement with travel agencies for promoting our product
Invite expert in hotel business, horse riding and other needed
Table 3. Hotels
name
Hotel 1
Hotel 2
Number
rooms
80
80
of 1 room
10 rooms
10 rooms
Table 4. Plan of operations
2014
Plan

Building process

Purchase
of
equipment

Creating partnership

Agreements
with
travel agencies

Invitation
of
specialist(and staff)
2 rooms
4 rooms
50
40
30
40
2015

First customers and
promotional campaign of brand

International exhibitions and
tourists from different countries

Working at planned (full)
capacity
16
Finances
Table 5 Price for tickets
Name
Price for 7nights/6 days. Everything
included
1000
900
800
Adults
Students
children(before 7 years)
The ticket includes:
-Flight and return
- hotel
- Nutrition( twice in a day)
-“Tengri Trips” program
Planning of costs
The company will spend the money for the purchase of land, construction
costs, equipment, payment of wages for builders, payment for electricity, as well
as to bear the additional costs associated with the organization and
implementation of the enterprise. Costs are calculated at constant prices without
inflation. [14]
We must define all of the costs that would be needed to create the project.
The costs mentioned in table 6.
Table 6. Plant and equipment
Name
Unit of
measurement
Land
hectares
Fridge
Number of
items
Engine for swimming Number of
pool
items
tranquilizer
Number of
items
Gas stove
Number of
items
House for staff
Number of
items
Quantity
Price, $
40
12
1 006
335
Overall
sum, $
40 269
4 020
2
671
1 342
4
335
1 340
5
100
500
1
50 000
50 000
17
Kitchen
The stage for
performances
Swimming pool
Pasture for animals
Entertainment
facilities
Equipment
Weapons for fighting
demonstration
bath
Hotels (40 rooms)
Number of
items
Number of
items
Number of
items
Number of
items
Number of
items
Number of
items
Number of
items
1
20 000
20 000
1
3 000
3 000
2
20 000
40 000
1
10 000
10 000
1
10 000
10 000
60
53
3221
60
20
1208
Number of
items
2
100 000
200 000
4026
4026
388926
Marketing
Total
The second group of costs relates to funding payments for staff. As we see in a
table below, total cost payments for staffs is $21,587
Table 7 – Costs for payments for staff
Name
Quantity
Price,$
director
Vice director
clerk
Manager
Administrator
IT specialist
Marketing manager
drivers
actors
volunteers
security
Chefs
smith
masseuse
1
1
1
1
2
1
1
2
2
60
6
4
2
1 006
671
400
450
400
500
600
500
700
6
400
450
350
Payment
period
Month
Month
Month
Month
Month
Month
Month
Month
Month
Per room
Month
Month
Month
Total
1 006
671
400
450
800
500
600
1 000
1 400
360
2 400
1 800
700
18
Fitness coach
Hotel staff
Total
3
17
500
400
Month
Month
1 500
6 800
21 587
In addition, of course, the company will incur expenses related with the cost of
marketing. Participation in the serving service airlines, including advertising the
tourist product "Tengri" on mugs and delivery of of chocolate will amount U.S.
$ 1200 per month
With regard that to nutrition we need to buy product twice per month
Table 8. Cost for nutrition
Name
Meat
Vegetables
Fruits
Cereals
total
Kg/litres
300
400
450
125
Price per
kg./litre,$
8
0.67
1.67
0.80
Period of
delivery
2 per month
2 per month
2 per month
2 per month
Price,
overall,$
2516
268
755
100
3639
Plan for incomes
It is one of the most important parts of our project.
Table 9 shows the monthly income of 3 types of activities
Table 9.Income
Name
Payments from:
Quantity
summary
(month), $
Trip
Clients
160
160000
Restaurant
Renting
2
4 000
Shops
salespersons
10
2680
Total
166680
The first source of income is trips. One trip for adult will cost
$500(without flight tickets). We have 80 rooms in our hotels and time period of
4 weeks. In summary: $500*80*4=$160,000
The second source of income is renting of our two restaurants.
Restaurants are not included to programme “Tengri- trips”. The renting fee is
$2,000 per month.
The third source of income consists of renting fees for shops. These shops
can sell broad range of goods from souvenirs, handmade things to clothing. The
renting fee for every shop is $268 per month.
The table 10 shows us the major factors of effectiveness of our project.
The starting cost of project is $414,152. Payback period (in case of income
$166,680) will be two and a half months. Payments for staff will be $21,587 per
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month. Taxes per quarter will be $5,647. Taxes per year will be $22,588. With
consideration of fixed costs, taxes, nutrition costs the total cost will be $32,073
and total income will be $214,680. Pure benefit will be $134,607
Table 10. management of income
Start up cost
$414 152
Income per month
$166680
Payback period
2,5 months
Fixed cost
Salaries for staff$32073 21 587$
Taxes-5647$
Nutrition costs-3639$
Airlines- 1200$
Net profit
134607 ( after 3 months)
We can measure profitability: Net profit/start up cost*100%= In
percentage terms.
Profitability of the project: 134607 : 414 152 * 100=32%
The 32% shows us that out project is relevant.(15) After completion
of plan of operations(from table 4) we can increase relevance in 2014, by
attracting attentions through international tourism exhibitions.
Why investors to invest money in the project, an innovative tourism
product "Tengri" than to the bank to deposit or in the national IPO?
Most of the investor prefers investing to deposits and shares in large
companies, few of them invest in start-up projects.
I propose to consider some examples.
Conditions: The Investor (X) has $ 414,152 of free capital.
Example 1. (Deposit)
An investor invests money to deposit (the interest rate offered by JSC
"Kazkommertsbank" is 9, 4%) [3] Hence, the annual income of the deposit will
be calculated by the following formula: $ 414,152 * 9.4 / 100 = $ 30,389 to
make an annual return to the investor on the investment of funds on deposit.
Example 2. (IPO)
According to the conditions investor has $ 414,152 of available funds, but
the maximum amount of money that he can invest in IPO is 7 million tenge. In
our case investor has 62,122,800 tenge(exchange rate on 24.04.13). Investor will
not be able to invest all his funds to IPO. [16]
Example 3. (Tourism product "Tengri")
On the basis of Table 10. Project payback period is two months from
investing $414,151. On the third month our project will produce net income of
$134,607. In 10 months investor will be able to gain $67,303. In comparison
with bank deposit and IPO our projects seems very attractive for investors.
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Main competitors
As stated above, our unique project has no direct competitors, but we have
indirect competition. Following areas are convenient for development of tourism
and creating competition for our project :
1.Burabai
Location-located in the Akmola region.
Type of tourism services and recreation areas, health spa, lake and cozy home
2.Kapchagay.
Located, on the banks of Kapchagai
Kind of tourist services - the river with modern beaches, water parks, hotels and
casinos.
3. Balkhash.
Location-West Kazakhstan region
Type of tourism services-Lake, the hotel complex.
Competition and new tourist areas that may arise in the future period, considered
and analysed in Porter Five Forces Analysis
Risk Management of the Project
The analysis of plan for development of project “Tengri” revealed possible risks
(17)
Risk 1.
 Our project is season oriented. We can function only in summer
 Risk Management: But we can provide annual flow of tourists by creating
infrastructure. The temperature in Turkestan is -5-10 in winters.
 We depend upon the reputation and stability of travel agencies, because
they will promote our project. It will be hard to return for those clients
who were not happy with the service (i.e. travel agencies)
 Risk Management: we should carefully study and select the best travel
agencies and work with several tour operators.
Risk 2.
 Risk: reduced demand for the tourism products or emergence of powerful
competitors can cause commercial risks for the market.
 Risk Management: to minimize this risk we plan to:
 Coordinate our actions according to long term marketing strategy
 To take into account SWOT and 5 forces analysis for future actions.
 Promote our brand “Tengri” and building a loyalty among our customers
Risk 3.
 Risks related to finances:
-The excess of actual expenditure items over the planned.
-Inflation.
-Insolvency client.
-Finding an investor.
 Risk Management: we should try to reduce production costs
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For the implementation of the planned activities we should consider:
 implementation of continuous control over the reducing costs. [18]
 Discounts for students and children as well as for tourists, who attracted
six new tourists.
 Analysis of the available sources of funding as well as participation in
contests and start up weekends. Preparation of a business plan (feasibility
study) for Business Angels and Venture Funds.
22
References:
1.
East Turkestan and Central Asia in the cultures of ancient and
mediaeval- Litvinskiy B.A .1986
2.
State of civilization culture of Central Asia-Rtveladze E.2005
3.
http://www.economy.kz
4.
Agapov P., A. Kadyrbaev. Treasures of Ancient Kazakhstan. Alma-Ata, 1979
5.
http://www.kspi.kz
6.
http://kurorty.kz
7.
Campaign of Alexander the Great in West Turkestan-Vladimir
Grigoriev.
8.
Marketing without a budget, Igor Mann. ISBN 978-5-91657-2308; 2011.
9.
http://www.turistu.kz/
10.
http://mirp.kz/
11.
http://www.econews.uz
12.
http://stat.kz
13.
The organization of the tourist business and technology of
creation of tourism products- Larisa Mishina.
14.
Technology of creation of tourism products: package tour- Vetkin
VA, Vintaykina EV.
15.
Financial analysis- Ionova AF, N. Seleznev 2006
16.
http://www.halyk-ipo.kz
17.
Risk management- Baldin K.V. 2006
18.
ABCs of compiling a of the victorious business plan- Garrett
Sutton
19.
Practicum on translation from Russian into English / Learn to
translate by Translating-Oleg Meshkov, Martin Lambert / Oleg
Meshkov, Martin Lambert. ISBN 5-88929-049-5, 5-89191-031-4;
2002
20.
Russian-English Dictionary of Economics, Zhdanov IF - 8th ed. M. Rousseau, 2007. - 879 with
21.
http://translate.yandex.kz/
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Annotation
The author of investigated the object which will be located tourism
product, and highlighted the main features which make this object unique for the
attracting tourists.
Due to the fact that the project aims to tourism activity has been analyzed the
tourist market of Kazakhstan and the world in general, just based on the
expenditure and forecasted profits were calculated economic and mathematical
coefficients. The research results of the project indicate that that the tourism
product and the program “Tengri trips” are new and will promote increase
tourist flow to Kazakhstan.
Moreover financial indicators reflect a rapid pay back on the project for a period
no longer than two months with an investment of $ 414,152 USD USA, which
characterizes the high rate of profitability by project.
It should be noted the analysis of Porter's Five Forces and the risk management
of the project, that contributed writing the scenario of the project for ten years.
Summarize the work in general, it should be noted that the chosen author of the
logic the drafting project, the sequence presentation allows deeply and
accurately cover the topic.
Project of Ulanbek Makhanbetov is based on a sufficient number of sources
dedicated to this subject, Clearly written, intelligently and accurately is
decorated.
Doctor of Economics, professor of Eurasian National University- Madiyarova
Diana Makaevna.
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