chapter 4

© 2010, Educational Institute

Chapter 4The Planning and

Development Process

World of Resorts: From Development to Management

Third Edition

(424TXT or 424CIN)

© 2010, Educational Institute 2

Competencies forThe Planning and Development Process1. Describe the role that developers often play in the

creation of new resorts and what they expect in return for their efforts.

2. Identify the participants in the planning and development process and how their efforts are organized and coordinated.

3. Describe the five phases of resort planning and development and the steps taken in each phase.

4. Delineate the content, uses, and limitations of the resort master plan.


Physical Plant Team Members• Developer• Land planner• Architect• Engineers• Interior designer• Landscape architect• General contractor and subcontractors• Suppliers and manufacturers• Project managers• Technological consultants• Recreational facilities consultants

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Ancillary Team Members

• Developer• Feasibility consultant• Market and financial analysts• Social engineer• Lawyers• Management consultants or the resort operator• Government advisors

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Purposes of the Resort Master Plan

• Is a planning tool to provide guidance for decisions

• Describes the general development concept of the overall resort estate

• Used to coordinate the preparation of more detailed plans

• Lays out areas earmarked for future development

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Purposes of the Resort Master Plan

• Analyzes the impact of new development on resort land over time

• Includes timetables and goals for future growth• Establishes strategic planning policies• Provides reasonable certainty for investors based

on forecast and pro forma data with detailed analysis

(continued)


The Five Phases of Resort Planning and Development

1. Conceptualization, planning, and initiation

2. Feasibility analysis

3. Commitment

4. Design, layout, and construction

5. Management and operation

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Concerns in Resort Design and Configuration

• Design, image, and marketing• Lodging structures• Recreational facilities• Design of the general transportation system• Freestanding restaurants, snack bars, retail, and rental shops• Provision for future expansion• Employee housing and related needs• Support facilities and systems• Resort hotel• Deliveries, waste removal, security, and maintenance• Food and beverage production

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Main Elements in a Feasibility Study

• A general overview of the area where the project will be developed, including the area’s economic climate, its political stability, travel trends in the area, community support, and weather patterns

• A market analysis that looks at potential types and numbers of visitors/guests and where they will come from, market needs, seasonal patterns, and other data.

• The physical characteristics of the site with particular reference to its advantages and disadvantages, possible alternative sites for the resort proposal, and the physical characteristics of the lodging facility projects.

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Main Elements in a Feasibility Study

• Financial information such as estimates of capital requirements, debt-equity leverage, cash flow statements, balance sheets, and income statement projections—also known as the pro forma statement.

• Additional information such as import duties and restrictions on importation of materials needed for construction or operation.

• Consensus and dissenting opinions of experts who have been consulted on the project’s feasibility.

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(continued)


Elements of the Commitment Phase

• Land assembly/site acquisition• Agreements from public entities for development

and funding assistance• Selection of and agreements with a hotel operator

for franchise rights, affiliation, and/or management assistance, if applicable

• Obtaining development rights for the site• Development of the general land-use plan• Selection of a project architect and engineer

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Elements of the Commitment Phase

• Selection of a project developer• Refined project development costs, schedules, and

drawings• Agreement among financing, developing, and

operating entities• Obtaining necessary environmental documents

and other governmental approvals and permits• Determination of ownership structure and securing

finance

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(continued)


Four Conditions Covered in an EIS

1. Designation, purpose, and need of a project

2. Statement of how the environment will be affected

3. Listing of possible alternatives and mitigating circumstances

4. An analysis of each alternative

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Requirements for an EIS

• All probable environmental effects of the proposed action

• Avoidable adverse impacts

• Suggested measures for abating or eliminating probable adverse impacts

• Discussion of the cumulative effects of the project in relation to other projects

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Requirements for an EIS

• Alternatives to the proposed action and their probable environmental effects

• Assessment of the trade-offs between short-term effects and long-term gains through investment in maintenance and enhancement

• Commitment, irreversible and irretrievable, of required natural resources if the proposed action is implemented

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(continued)


Characteristics of an Intense/High-Activity Type of Resort

• Activities and facilities located close together

• Atmosphere of constant action and excitement

• More hotel units, smaller rooms

• Compact use of space

• Greater attention to acoustical treatment

• Small restaurants with higher turnovers

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Characteristics of a Less Intense Type of Resort

• A remote location away from other properties • Fewer hotels within the resort complex• Activities and facilities that are more dispersed• More relaxing types of activities• Larger-size rooms• More food and beverage facilities on the premises• Finer accommodations• Less attention to acoustical treatment• Self-containment with little need for outside services

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Activities of the Project Manager

• Initiating and administering contracts

• Developing working drawings and specifications

• Directing the bidding process and conducting negotiations with each subcontractor

• Scheduling construction activity

• Monitoring construction

• Assisting in bringing in the project on time and on budget

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Elements in the Final Phase of Resort Development

• Preparation and implementation of an aggressive sales and marketing campaign

• Recruitment, training, and retention of staff• Provision of services per negotiated agreements• Organization and management of each operating

department• Control and reduction of operating costs and expenses• Generation of profits, maintenance of facilities, and

enhancement of the resort’s image

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Elements of a Strategic Plan for Selling Excess Land Holdings

• Analysis of existing markets and tourism trends• Analysis of the resort in terms of its strengths and

weaknesses• Strategies and programs to build on strengths and reduce

weaknesses• Estimation of financial requirements and revenue to be

derived from the proposed programs• Management of assets, including land, and their yields• Capital improvements and revenue impact• Suggested timetable for achieving objectives

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chapter 4

Technology

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