SUSTAINABLE DEVELOPMENT IN
RURAL INDIA THROUGH TOURISM
Chinmaya Kiran Vadali
Athidhi- Enjoy, Enrich
 Vision:
 To showcase and promote the best of authentic Indian traditions
through premium hospitality destinations
 Ensure holistic development by preserving cultural diversity
and through eco-tourism
 Harmonizing with surroundings and enhancing the quality of
life by harnessing local creativity
Context of CINE
 Sustainable development is a three step process
 Seed Development (May or may not be innovative)
 Irrespective of sustainability, basic needs like food, shelter and clothing
NEED to be fulfilled.
 INNOVATION
 Innovation is expressed in cases where existing processes are sub-optimal
 Sustainability
 Achieved by harnessing local resources and culture
The idea:
 Cottage style resorts made with
reinforced local material
 In villages (Pochampalli, Zainabad,
Guruvayoor and so on)
 Closer to natural assets like waterfalls,
forest reserves etc. in about a 100 mile
radius.
 Promoting local culture in all respects
 Architecture (design, construction)
 Food, hospitality and Entertainment
 Employee base
 Eco tourism
 Value Proposition:
 Unique get away from city life
 Exposure to exotic traditions and culture
 Nature’s embrace, meeting PEOPLE
http://www.desertcoursers.net/resort.htm
Existing resources and shortcomings
 Government owned resorts
 Few destinations
 Fewer accommodations
 Bureaucratic hassles in
improving
 Only the already well-known
products promoted
 Leave a lot to be desired
http://www.exploreruralindia.org/
Continued…
 Private accommodation – homestay tourism in Sikkim
 Dedicated space in home for tourists’ stay: Source of income for
local families.
 Not scalable model
 House etc. are necessary investments before families can earn
 Culture promotion is not organized.
 Resorts like Zainabad Resort:
 Precedent for our model but very few in number
http://www.nivalink.com/sikkim/homestay.html
Operating Model
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4 eco-friendly resorts (initially) spread across India to cover all tourist seasons
Focusing 4-5 day packages
Less than 100 km from prominent tourist spots, close to traditional villages
Local architecture (Mud houses etc.) with basic modern amenities and necessities
(W/C, Purified Water, optional A/C, power outlets, emergency phones,
discouraging mobiles & internet), no plastic zones, alternate energy, rainwater
harvesting
Managers recruited centrally, local villages form the employee base
Local cuisine, entertainment, arts & crafts
Complementary nature walks and tours
Company owned sales offices, exclusive online/telephone booking, promotion
through social networking sites and liaising with government
Sales personnel for corporate marketing
Offering vocational training to villagers in off-season (hospitality, horticulture,
cooking, crafts etc.)
Revenues and Costs Sources
 Three key sources of revenue:
 Holiday package sales
 Sales of local art, handicrafts etc. at resorts and at branch offices
(boutiques)
 Massages and art- of- living packages
 Key Costs:
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Infrastructure depreciation
Initial Capital investments
Advertisement and promotions
Employee base (in branches and at resorts)
Resort maintenance and vocational training related expenses
Raw material costs (for food, utilities, massages etc.)
Revenue Estimates (INR)
Planned
Year Capacit
y
Occupancy
Number
Occupancy
Average cost per
room night
Price of a
Package
Package
Demand
Sale of
Handicraf
ts
Total
Revenue
InOffAverage
InOffIn
Off
season
season
In season Off Season price per
season season
Season Season
120 days 240 Days
person day
2010-11
400
25%
20%
12000
19200
6000
4000
1000
4800
7680
400000
2011-12
400
30%
20%
14400
19200
6000
4000
1000
5760
7680
400000
2012-13
600
30%
20%
21600
28800
6000
4000
1500
8640
11520
600000
2013-14
600
40%
30%
28800
43200
8000
6000
1500
17280 25920
960000
2014-15
600
50%
35%
36000
50400
8000
6000
1500
21600 30240
960000
161,680,000
177,040,000
275,640,000
555,360,000
669,120,000
Costs & Profit Estimates
Year
Land
2009-10 60,000,000
Construction Depreciation Employees Raw material Handicrafts
Utilities
40,000,000
2010-11
10,000,000
10,000,000
25,920,000
200,000
15,552,000
10,000,000
11,500,000
25,920,000
200,000
15,552,000
2012-13
12,000,000
13,225,000
38,880,000
300,000
23,328,000
2013-14
12,000,000
15,208,750
51,840,000
480,000
31,104,000
2014-15
12,000,000
17,490,063
51,840,000
480,000
31,104,000
2011-12
20,000,000
Profit Estimates
Year
Maintenance
Vocational
+ Renovation Promotion Training
Total Cost
2009-10
Operating
profit
Cost of
Capital
Profit
Before Tax
10,000,000 (10,000,000)
2010-11
5,184,000
1,000,000
250,000
68,106,000
93,574,000 10,000,000
83,574,000
2011-12
5,184,000
1,000,000
250,000
69,606,000 107,434,000 12,000,000
95,434,000
2012-13
9,331,200
1,000,000
250,000
98,314,200 177,325,800 12,000,000 165,325,800
2013-14
12,441,600
700,000
250,000
124,024,350 431,335,650 12,000,000 419,335,650
2014-15
12,441,600
700,000
250,000
126,305,663 542,814,338 12,000,000 530,814,338
References:
 http://www.exploreruralindia.org/
 Government of India initiative for rural tourism
 http://rbh.in/Home/thrust_areas/rural_tourism.aspx
 CII conference about promotion of rural tourism
 http://www.desertcoursers.net/resort.htm
 Zainabad resort (hosted ERI- an IIMA elective)
 http://www.nivalink.com/sikkim/homestay.html
 Sikkim home-stay resources
Thank You