Approach to the feasibility features of the PARNIS project

PARNIS, Mountain Accommodation and Hiking Center

Executive summary. 

Description of the business’s purpose.

Name: PARNIS, Mountain Accommodation and Hiking Center

At Thrakomakedones a suburb of Athens, Greece at the flanks of Parnitha Mountain at 27 km from Athens center.

The street address is 3, Imathias street, Thrakomakedones, 13676 Greece.

 A)   Personnel needs for the PARNIS Center:

1 caretaker mainly for the external space of an approx. 800 sq. meters including the swimming pool.

1 cleaning lady for the internal space of the 6 houses

1 sales secretary,

This will be the Tourism business management staff working at an office in the basement dug into the slope below the first house at the façade. This will be also the reference point for the caretaker and the cleaning lady.

The sales secretary will take care of the marketing plan including promotion with the internet in various search machines worldwide, Google for the West, Yandex for Russia and others for China and South East Asia.

The sales secretary will take care also of the connections with Airbnb and the lke.

   B)   Marketing Plan:

It is based on the following considerations: Athens has approx. 5 million foreign visitors per year as it is indicated at https://news.gtp.gr/2018/10/08/athens-expects-record-5-5-million-tourists-2018/

Per example approx 20% of the British people like hiking see at:   http://www.walkingandhiking.co.uk/how-popular-hiking.html   This could be taken as an approximation for the foreign visitors of Athens too.  With a good international promotion of the PARNIS project, this percentage could easily be improved.

It means that 1 million of the foreign visitors of Athens per year could be our clients. PARNIS capacity at this first stage could only be 8.760 bed-days or serve 3.000 persons for an average stay of 3 days each.

It means that out the 1 million people, PARNIS at this first stage could only serve 3.000 !

   C)   There is no risk by any competition because in our case PARNIS could absorb only a small fraction of the expected demand. Imitating the PARNIS idea by others it would rather help the PARNIS business. Thrakomakedones suburb is anyway the best place to start hiking trails to the Parnitha Mountain.

   D)   The financial projection:

There are 12 double bed rooms and a moderate price to rent per day is 50 EUR per room per day.

With occupancy of only 50% it means a gross income of 109.500 EUR per year or 2.106 gross income per week.

With the help of a platform of Airbnb which is for 8 double rooms maximum and if we extrapolate for 12 rooms as in our case, we get 1.284 net income (856 EUR for 8 rooms).

Recapitulating:

With only 50 EUR per room per day the gross income is 2.100 EUR per week (simple mathematics).

Airbnb for the same address in Thrakomakedones and without considering the attraction of hiking, just the stay at this Athens suburb, is calculating 1.284 EUR per week net income for a private owner of 6 houses like PARNIS (with their commission, taxes and other expenses subtracted).

For an investment of 695.000 EUR it means 9,6% performance of the capital invested. This is based on Airbnb calculation platform.

In our case the VAT will be for the investor’s company and therefore will not produce cost as for companies is amortized.

With a good marketing the occupancy could be easily be improved and therefore the capital’s performance too which easily could exceed 10%.

Construction’s BUDGET calculation:

Property commercial value:                                         100.000 EUR
(Official legal objective value is 185.000 EUR)

Architectural study, Building permission:                  45.000 EUR

Earthworks by the chemical expansion system:        50.000 EUR

Base preparation for 6 houses the Finish style:         60.000 EUR  

6 Finish style and origin prefabricated wood tree trunk houses of total covered 

surface of 412 sq. meters                                              320.000 EUR

Furniture for the 6 houses                                             40.000 EUR

Swimming pool behind the facade’s fence                  50.000 EUR

Public services connections, Perimeter Fence, fire safety, external lighting and walking paths inside the land’s plot                                                       30.000 EUR 

Total                                                                         695.000 

E)      Tourism business summary:

The investor should establish a company which would be the owner of the property with the six houses of Finish style destined to serve a market niche which is still yet unexploitable and promising a big expansion.

   F)   Products and/or services the Parnis Center will provide:

Accommodation of short period like 3 to 7 days for hikers and mountaineers at nice houses in harmony with the forest environment. The PARNIS Center is projected to be already on mountain path trails at an altitude of 530 meters and therefore will inspire the hikers

Professional guiders for the trails to follow depending on the various many destinations at Parnitha Mountain, each one with its own degree of difficulty. This will be available to the hikers as an extra service. Different Refuges at altitudes more than 1.000 meters altitude like MPAFI and FLAMBOURI await the hikers at the Mountain with restoration facilities.

Professional mountaineering teachers are also available for those who wish to take climbing training (extra service too).

Each house will have kitchen facilities for breakfast and meal preparation by the clients who could also choose delivery service from nearby restaurants of the city. PARNIS is located in the suburb city of Thrakomakedones. A bus stop is located at 100 meters from PARNIS. Thrakomakedones suburb central square is 2 to 3 Km away with community facilities, a supermarket, small Department Store, Telecommunication center, Police station, Coffee shops and restaurants.

    G)       Analysis of the market. Information about the target market and our competition.

To consider only that there are 5,5 million foreign visitors of Athens per year.

20% of them are estimated to be familiar with hiking and mountaineering.

We should also consider that in Athens are living more than 4 million Greek people too and between them a 10% could be surely familiar with hiking.

Half of this 10% would spend a few days per year at PARNIS Center.

So we have a total of 1,2 million potential clients for PARNIS.

Out the 1,2 million people, PARNIS could only serve 3.000 as we have indicated before in paragraph B. Note that 3.000 people is only a small proportion of the market’s potential.

Therefore with a good marketing the occupancy could be much more than 50%.
Therefore the investment's rendering considerably higher than 10% which corresponds to 50% occupancy only.

As far as the competition is concerned, any spread and imitation of our basic business idea by others would lead in creating a better market for PARNIS. So we do not see any competition problem for the next few decades.

   H)     Tourist business strategy.

Our Hellenic Engineers Cooperative will make a business proposal to the investor for the PARNIS Center maintenance, the planning and running the tourist business, the marketing and pricing of PARNIS services.

In this case the personnel mentioned in paragraph A will be hired by the Cooperative and not by the investor. This way the investor will not have to take care of the day to day business and a minimum of 10% annual performance of his investment will be achievable.

George Vamvakousis

President of the steering committee

Coordinator of the 6^th Welfare Sector

Related presentation at https://hellenicengineerscooptee.blogspot.com/2018/11/parnis-centre-alpiniste-dhebergement-et.html