A Feasibility Study of Establishing a Beach Resort in Sr.

San Roque, Anda

A Research Proposal and Design

Prepared by:

Alkuino, Zelaine

Ente, Elaine Jane

Mahinay, Chrystel Ann

Malicse, Maria Jessica

Nesperos, Agustin

Romero, Teofie Anne

College of Business and Accountancy

University of Bohol

Tagbilaran City

October 2018
INTRODUCTION

They say a resort gives the feeling of a home away from home. With its

perplexed structures combined with a great ambiance, it is really not impossible

to achieve. A resort is a full service lodging facility, intended primarily for

vacationers and usually located in places frequented for relaxation or recreation

such as beaches, seashores, scenic or historic areas, ski parks and spas. It is a

self-contained establishment providing for a most vacationer’s needs while

remaining on the premises. With this, it may help in sustaining a tourist

destination image. Aside from that, these kinds of accommodation offer us an

opportunity to visit the most vibrant cities and exotic destinations around the

world.

People nowadays especially the millennials love the idea of travelling in

order to do soul searching, meet new people, experience varied cultures and see

unique structures that a place could offer. This is the reason why a resort to stay

is very important in opportunities like these. They can enjoy their travels without a

problem of where to rest and sleep. It gives them a peace of mind knowing that

after each adventure in a day, they can go to place where they can call home just

situated in a different location. Aside from that, it can help them relax through the

services that a resort can possibly offer.

The proposed study aims to understand one of the intrinsic factors of

travelling and see if it is feasible enough to be undertaken by the proponents. It is

purposely done to determine business opportunities that may be grabbed and

how to achieve them. This study also helps us figure out if it will provide benefits

to the society, economy and environment such as giving job opportunities to the

residents of the location of the planned resort and boosting the tourism of where

the resort will be situated.

The location we chose for the resort is in Anda, Bohol. The size of the land

is 9,268 sq. meters. It is situated near a cliff with a view of the vast ocean that

could give a serene feeling for tourists whenever they choose the resort as their

accommodation. Anda is one of the municipalities of Bohol. It is situated far from

Tagbilaran City having a distance of 112.5 kilometers which requires a travel time

of 4-5 hours coming from the city proper. Amidst the distance, Anda is a good

location for the resort since it has white-sand beaches just like the beaches in

Panglao Island, Bohol. Aside from that, this place is not overpopulated since

Anda is a newly discovered beauty because of its beaches. With this, we can

assure that it can give a very peaceful and serene experience for tourists who

choose to have a vacation in Anda accompanied by a very beautiful view that

serves as a picturesque for every tourist’s memory.

THEORITICAL FRAMEWORK

Porter’s Five Forces Theory

A theory called “Porter's Five Forces of Competitive Position”, developed

by Michael E. Porter (1979) stated that in order to know the level of

competitive intensity and attractiveness of an industry, the five forces are to

be considered. This theory is not just useful in determining the current level of

competitive intensity of an industry but also for the future years ahead. Many

analysts rely on this theory to know the profitability of new products or

services that are to be offered in the market.

The five forces:

Threat of
Substitution

Supplier Competitive Buyer

Power Rivalry Power

Theat of
New
Entrants
To explain:

Competitive Rivalry is determined by looking at the number and strength of the

competitors. If rivalry is high, companies can draw customers with strong price

cuts and high impact marketing campaigns. Also, in a market where there are

lots of competitors, this may result to losing suppliers and buyers if they they’re

getting good deal from your competitors.

Supplier Power is determined by the ability of your suppliers to easily increase

their prices. It is easier for you to choose for cheaper options if you have a lot of

choices to choose from. But if you have fewer suppliers, they charge you more

knowing that you need their help. In short, they have the ability to control you that

could affect your profit.

Buyer Power is the power where in the buyers has the ability to bring your prices

down. The fewer customers you have, the more the customers have the power

against you and vice versa.

Threat of Substitution is the ability of your customers to outsource or substitute

your products and the things you do into cheaper and convenient ones.

Threat of New Entry is the ability of potential competitors to affect the present

position of your business. Rivals can easily catch up to your progress if you have

weak barriers to entry and vice versa.

The Ansoff Matrix

The Ansoff Matrix was developed by Igor Ansoff and until now, it is still widely

used by businesses all over the world. According to an article entitled “The

Ansoff Matrix Helps Organizations to Grow”, “The Ansoff Matrix (also known as

the Product / Market Expansion Grid) is a strategic framework designed for

organizations who want to move beyond ‘business as usual’. It’s designed to help

you figure out which of four strategic directions you should take to successfully

grow your business. “

Here is the Ansoff Matrix.

Market Penetration involves selling your existing products to your existing

customers. In other words, your target market is the same as your usual market.

Market Development involves selling your existing products to a new market.

Product Development involves selling your new products to new markets. This

is the considered as the riskiest among all.

REVIEW OF RELATED LITERATURE

Bohol is one of the most visited places in terms of tourist destination. It is blessed

with a lot of natural resources which are endearing and very much lovely, thus

investors are ignited to open up business establishments like spas, hotels and

resorts to accommodate the needs of the increasing number of tourists in Bohol.

Planners are now challenged with understanding how the public perceive tourism

in order to gain support for tourism projects (Harrill, 2004). Socioeconomic

factors, spatial factors, economic dependency, community typologies, theoretical

perspective are needed to be examined in order to know the opinions and

attitudes of residents towards tourism development. With this, planners have the

capacity to initiate participation from the citizens which will likely be concerned or

oppose tho the tourism planning and community development.

The article “Measuring tourist satisfaction by attribute and motivation: The case

of a nature-based resort” by Fang Meng , states that knowing tourist satisfaction

is important in innovating and marketing existing goods and services. When we

talk about tourist hotels and resorts accommodation is a big factor in measuring

tourist satisfaction because we all know that tourist are travelling to explore or to

unwind so they need a good place to stay and relax. Most hotels and resorts

nowadays are modernized, that’s why people think that nature-based resorts are

unique concept because through this we are getting close to nature and we are
supporting the eco tourism industry. It is important to maintain good quality of

goods and services so that tourists would love to come again and again in our

place. Also, one way of knowing tourist satisfaction is that tourism industry must

innovate from time to time so that the tourists have new things to enjoy and

explore every time they visit our place, and in this way we can build a good name

that is famous around the world.

According to an article of Gregory Steffins entitled “SWOT Analysis for Strategic

Decision Making”, all businesses aim to have a competitive edge against their

rival companies. An efficient strategy that can be used is the SWOT (Strength,

Weaknesses, Opportunities and Threat) Analysis. It helps to analyze the

company’s internal strengths and weaknesses and its external opportunities and

threats.

Seasonality is experienced in tourism destinations (Baron, 1979). Seasonality

indicated the phenomenon of fluctuations of demand or supply in the tourism

industry due to climate status, constraints of public holidays, special attractions

(e.g festivals) or personal lifestyle.

The article entitled “The Methodological Progress of tourism demand forecasting”

(Goh et al. 2011) has been studied and classified into 3 main groups and was

adopted. These main groups are the economic-based approach which was
applied with statistical methods to the study of economic data and problems,

time-series techniques (time of span) and artificial intelligence (AI-based

methods). Advanced method was used for better results in terms of forecasting

accuracy.

REVIEW OF RELATED STUDIES

A study by Russell Arthur Smith entitled “Beach Resorts: Evolution: A model of

development evolution” states that, ”In recent decades, tourism has become a

worldwide industry. An integral part of this industry has been the development of

many beach resorts particularly in tropical areas.” Because of establishing beach

resorts it gives a lot of benefits to the people in terms of their livelihood and

country’s economy. “Despite many positive aspects to this process, as resorts

urbanize, increasing negative effects of development tend to have an impact on

the resort quality, with implications for tourists, residents, managements,

developers, and governments.” (Smith, 1992) One of the beach resorts that

suffered this kind of problem is Pattaya, Thailand. We all know that there are

pros and cons upon developing and establishing a beach resort, that’s why

supporting eco-tourism industry can help solve this kind of problem.

A study entitled “The Potential of Selected Beach Resorts In Sto. Nino, San

Felipe, Zambales as Tourists Destinations” (Arzola et al, 2016) enumerates the

beach resorts that have the potentials to be popular not just in Zambales but also
nationwide. With this, it can give ideas on what kind of beach resorts to build and

what services to offer in order to reach the quality standard of a beach resort.

Statement of the Problem

This study aims to determine the feasibility of the beach resort in Sr. San Roque,

Bacong, Anda, Bohol as basis for establishment of a beach resort specifically it

aims to answer the following questions:

1. Is there a sufficient demand for a resort in Anda to merit the establishment

of resort?

2. Is the project feasible in terms of the following:

a. Management

b. Marketing

c. Financial

d. Socio-economic Aspect?

3. What are the technical requirements to make the proposed business?

4. Is the place accessible to customers?

5. What recommendations could be given to the project proponents in terms

of measures and strategies for implementation of the project?

HYPOTHESIS/ THESIS STATEMENT

Anda, being one of the key tourist destinations in our province, the researchers

have formulated these hypotheses for the purpose of this research:

1. The establishment of beach resorts to be situated in hot spot areas is

expected to have higher profitability rate than in places where there is

no much tourist destinations.

2. The establishment of beach resorts is more likely to provide benefits to

the society, economy and the environment.

SCOPE AND LIMITATIONS

The study will cover all aspects of the feasibility study in the conduct of this

paper. However, researchers will depend on the speculation on information

related to building of the resort given the fact that none of the researchers belong

to field to field of engineering or architecture. Researchers will gather the

documents to review from the Department of Tourism in Anda. This data will

include information such as the data on the number of tourists visiting Anda.

Though the data are thoroughly examined and reviewed to be used in this study,

there is a possibility of inadequacy of information. The research will be conducted

within five months starting from October 2018 until March 2019. Researchers

intend to visit resorts in Anda as many as possible in order to obtain in-depth

data. However, it might not be possible to get the information from all the resorts.
SIGNIFICANCE OF THE STUDY

The researchers aim to give benefits to the following:

Researchers: This will encourage the researchers to broaden their knowledge

and obtain helpful information that will blossom their cognitive and critical thinking

through exploring a need and finding solution to satisfy that need. It will heighten

their knowledge about establishing and managing resorts while having fun in

exploring the beauty of tourism in Bohol.

Proponents: This study will provide the proponents necessary information in

order to come up a sound decision. The ability to understand the strengths,

weaknesses, opportunities and threats will help them prepare in venturing this

type of business.

LGU of Anda: This will help the local government unit of Anda to provide

employment to its residents and improving their kind of livelihood. Aside from

that, it will boost their economy through the establishment of the resort.

Tourists/Customers: This will help the tourists and customers to have a wide

array of options regarding accommodations and activities. Also, it can be use as

a venue for events in their life such as weddings, conventions, birthdays and

meetings.

Future Researchers: This study will serve as a reference to future researchers

who will conduct the same kind of research.

 RESEARCH METHODOLOGY

RESEARCH DESIGN

In gathering data, interview and survey will be conducted by researchers

because it best suits to answer the questions and purposes of the study.

Interview schedule will be designed by researchers in collecting data to elicit

relevant information regarding the tourism activities in Anda. The head and other

authorized personnel of the Department of Tourism in Anda will be interviewed.

Survey research is defined as “the collection of information from a sample of

individuals through their responses to questions” (Check & Schutt, 2012, p. 160).

In other words, only a part of the population is studied and its results are

considered to be the response of the whole population. Sampling survey will be

specifically conducted among the resort owners in Anda, residents of the

different barangays in town and the local and foreign tourists in Anda. A

probability sampling procedure will be used in selecting the participants in this

study to ensure a fairly equal representation of the variables for the study.

RESEARCH ENVIRONMENT

The town of Anda is 112.5 km away from the city of Tagbilaran. It comprises of

17 barangays named as Almaria (5.96 sq. km), Bacong (4 sq. km), Badiang (5.38

sq. km), Buena Suerte (4.84 sq. km), Candabong (8.09 sq. km), Casica (1.29 sq.

km), Katipunan (4.62 sq. km), Linawan (3.42 sq. km), Lundag (8.83 sq. km),

Poblacion (0.51 sq. km), Sta. Cruz (2.12 sq. km), Talisay (2.19 sq. km), Suba

(.95 sq. km), Tanod (5.01 sq. km), Tawid (1.47 sq. km) and Virgen (4.36 sq. km).
According to 2015 census, the population of Anda comprises of 16, 462 people.

The barangay we chose to build our resort is located in Sr. San Roque, Bacong,

Anda Bohol.

RESEARCH PARTICIPANTS

For the collection of data through a survey, tourist or customers are the

participants. For the basis of the interview guide, the owners of other resorts are

the participants.

DATA GATHERING PROCEDURE

Researchers will send a letter seeking permission to conduct the study to the

following: Dr. Lumin T. Pamaran, Vice President of Academics of University of

Bohol, Dr. Cesario O. Edulan, the Dean of College of Business and Accountancy

at the University of Bohol, Inday Simacio, Mayor of Anda and ____________,

Head of the Tourism Department in Anda, Bohol.

ETHICAL CONSIDERATION

This study will undergo Ethics Review by the UB Research Ethics Review

Committee. The researchers will take the consent of all the participating

respondents, reporting their written consent regarding their participation

research, through the signed consent forms. All the participants in the research

are voluntary, they will be informed about the purpose of the study and the

procedures that will be used to collect the data. Researchers will take all the care

in ensuring the privacy and confidentiality of data collected.

DATA TREATMENT

Quantitative data collected will be analyzed and interpreted using mean

(weighted average) and standard deviation.

Percentage

This determined the frequency counts base on the profile of respondents.

𝐹
FORMULA: % = 𝑁 (100)

Where:

% - percentage

F – frequency

N – total no. of respondents

100 – constant value

Weighted mean

This determined the average of the respondents:

FORMULA:

∑ 𝑤𝑥
Weighted mean = ∑𝑥

Where:

∑ - the sum

W – weights
 X – value

Test of Correlated Means. To determine whether there is a significant degree of

differences in the responses of customers on the services offered at resorts in

Anda and their preferences, the data will be subjected to t- test using the formula:

𝑡𝑐𝑜𝑟 = mean difference between the two groups (D) df = n -1

√Σ𝐷2 -(∑𝐷)2+n/n(n-1)

Where:

𝑡𝑐𝑜𝑟 - test of correlated means

D – mean difference of the two groups

N – number of items

DEFINITION OF TERMS

Eco beach resort is a paradise established in the cliff that tries that preserves

the natural ambiance of the place which makes the tourists to feel close to

nature.

Modernized beach resort is a type of beach resort that has modernized

architectural designs.

Seasonality is mostly caused by holidays and weathers that dictates the number

of customers that will visit a place just like during pick seasons.

Fluctuations is an irregular rising and falling in number of tourists visiting a

place.

Tourism requires the ability to conform to the constant changes of needs and

desires of the customer’s satisfaction, safety, and enjoyments.

CITATION MATRIX

CITED LINES PARAPHRASED LINES REFERENCES

“Porter's Five Forces of A theory called “Porter's Porter,M.E. (1979). “How

Competitive Position Five Forces of Competitive Forces

Analysis were developed in
Competitive Position”, Shape Strategy”
1979 by Michael E Porter of
developed by Michael E. https://bit.ly/2h8FEam
Harvard Business School
Porter (1979) stated that [Accessed October 17,
as a simple framework for
in order to know the level 2018]
assessing and evaluating
of competitive intensity
the competitive strength
and attractiveness of an
and position of a business

organization.”
industry, the five forces

are to be considered.

“All businesses have All businesses aim to https://bit.ly/2wORWcJ

goals that involve have a competitive edge

creating a sustainable against their rival

competitive advantage companies. An efficient

 over their competitors. strategy that can be used

This requires companies is the SWOT (Strength,

to develop effective Weaknesses,

business strategies that Opportunities and Threat)

exploit their operational Analysis.

advantages over

competitors, while

minimizing their

disadvantages. An

effective strategic

development procedure

that links internal

organizational strengths

and weaknesses, with

external opportunities

and threats, is SWOT

(strengths, weaknesses,

opportunities, and

threats) analysis.”

“The Ansoff Matrix (also The Ansoff Matrix Help

known as the Product / Organizations To Grow.

Market Expansion Grid) (n.d.). Retrieved October

is a strategic framework 17, 2018

designed for https://bit.ly/2QU4Iyc

organizations who want

to move beyond

‘business as usual’. It’s

designed to help you

figure out which of four

strategic directions you

should take to

successfully grow your

business.”

“Knowing tourist Harril, R. (08, January 1).

satisfaction is important “Measuring tourist

in innovating and satisfaction by attribute

marketing existing goods and motivation. Retrieved

and services.” October 17, 18, from

https://bit.ly/2CO1LMr

”In recent decades, Smith, R. (1992) “

tourism has become a entitled “Beach Resorts:

worldwide industry. An Evolution: A model of

integral part of this development evolution”.

industry has been the Retrieved October 17,

development of many 2018

beach resorts particularly

in tropical areas.”

A study entitled “The Arzola, et al. (2016) “The

Potential of Selected Potential of Selected

Beach Resorts In Sto. Beach Resorts In Sto.

Nino, San Felipe, Nino, San Felipe,

Zambales As Tourists Zambales As Tourists

Destinations” (Arzola et Destinations”

al, 2016) enumerates the

beach resorts that have

the potentials to be

popular not just in

Zambales but also

nationwide.

“Most tourism Seasonality is

destinations experienced experienced in tourism

seasonal patterns of destinations. Seasonality

tourist visitations. indicated the

Seasonality is the effect phenomenon of

occurring every year due fluctuations of demand or

to climate status, supply in the tourism

constraints of public industry due to climate

holidays, special status, constraints of

attractions or personal public holidays, special

lifestyle.” attractions (e.g festivals)

or personal lifestyle.

“Research on modeling The article entitled “The

the estimation and Methodological Progress

forecasting of tourism of tourism demand

demand has evolved with forecasting” (Goh et al.

increasing sophistication 2011) has been studied

and improved quality. IN and classified into 3

this study, three main main groups and was

groups were classified adopted. These main

according to the methods groups are the economic-

and techniques adopted based approach which

– an economic based was applied with

approached, time-series statistical methods to the

techniques and artificial study of economic data

intelligence based and problems, time-

method.” series techniques (time of

span) and artificial

intelligence (AI-based

methods). Advanced

method was used for

better results in terms of

forecasting accuracy.

ANNEX A

SURVEY QUESTIONNAIRE FOR THE TOURISTS

To our dear respondents,

We, the 3rd year students of College of Business and Accountancy from

the University of Bohol are presently conducting a feasibility study regarding the

establishment of a beach resort in Sr. San Roque, Bacong, Anda. The objective

of this survey is to gather useful data for the proposed project feasibility study.

Direction: Please fill in the blank and put a check mark on the spaces provided

and supply the needed information.

Respondent’s Profile:

a. Name:_____________________

b. Age:______________________
Survey Questions:

1. Have you been to a beach resort? ______ YES ______NO

2. If yes, how long will you be staying in the resort? ______________

3. How often do you go to a beach resort in a year?_______________

4. What are your purposes in going to a beach resort? Check as many as

you can.

________ Relax/Unwind

________Family Bonding

________Holiday

________Soul Searching

________Enjoy and Explore

________Weddings

________Conventions

________Seminars

________Meetings

5. Which do you prefer in going to the beach?

________ alone ________with a company

6. What do you prefer in a beach resort:?

_________modernized resort _______ eco tourism resort?

7. How much are you willing to spend for a night/day in a beach resort?

______________

8. Do you consider the distance in traveling from airports/seaports to the

beach resort? ________YES ________NO

Guide Questions

What inspires you to establish the beach resort?

When did you establish the beach resort?

What are your ways of marketing your beach resort?

What are your best facilities that most customers love to have in your resort?

What makes you unique from other beach resorts?

What are your difficulties challenges upon establishing your beach resort?

How many customers keep on coming back in your beach resort in a year?