Abstract of Studies and Measures Report Regarding · COMFAR III Expert [email protected] Summary...

“BAMA” Group

Abstract of Studies and Measures Report Regarding

Sarvestan “Roya” Tourism complex

Fars- Iran

The first green tourism complex in Iran

The first publicly held expert tourism company in Iran

The first and only tourism region of publicly held type in Iran

The first tourism complex in Iran designed and implemented on the basis of Iranian gardens

The first and only tourism region in Fars of which all infrastructures have been implemented,

permits have been obtained and some parts are being exploited

1

Introduction

Nowadays, tourism industry is considered as one of the most profitable industries in the

world and competes with other large industries such as automotive, arms and oil

industries economically.

Iran, having the tenth place in terms of tourism historical attractions and the fifth place in

terms of ecotourism attractions among the countries member of World Tourism

Organization, enjoys great potentials in tourism industry.

Given improvement on international relations of Iran and finalization of BARJAM,

disturbance and insecurity in the region countries which were main tourism destinations

before, lack of development in other segments in Iran, need for freedom from single-

product (oil) economy, oil price downtrend, and little inclination towards import in

tourism industry, this industry nowadays is one of high priority plans of the government,

and investment in this segment will undoubtedly turn into one of the most lucrative

investments in Islamic Republic of Iran.

“Introducing Sarvestan Tourism Region”

Sarvestan tourism region with registered brand of “Roya” Tourism Complex has the

following main permits and agreements:

1- Agreement of Government of Islamic Republic of Iran.

2- Agreement for establishment of Sarvestan tourism region issued by Iran Cultural

heritage, Handcraft and Tourism General Office.

3- Act of Fars Province Council for Management and Planning.

4- Agreement of Fars Province Cultural heritage, Handcraft and Tourism General

Office.

5- Agreement of Fars Province Infrastructure Affairs and Urban Development Task

Force.

https://en.wikipedia.org/wiki/Government_of_Islamic_Republic_of_Iran

2

Other permits and licenses required for execution of the project have been obtained from

governmental organizations and offices of Islamic Republic of Iran as follows:

Governorate of Sarvestan County, Municipality of Sarvestan, Environmental Protection

General Office of Fars Province, Fars Province Electricity Distribution Company, Fars

Province Gas Company, Roads and Urban Development General Office of Fars Province,

Land Affairs Management of Fars Province, etc.

“Place and location of Roya Tourism Complex”

Roya tourism complex is located at 75 km southeast from the city of Shiraz which is the

capital of Fars Province. Over 30% of Iran’s historical and natural monuments lie in Fars

Province. Fars Province, having global registered monuments, Persepolis and

Pasargadae, and also tombs of world eminent poets (Hafez and Saadi), is considered as

the uppermost tourism province in Iran. The period required for ground access from

Shiraz Dastgheib International Airport to Roya tourism complex is about 50 min.

Roya tourism complex is situated beside Shiraz-Bandar Abbas highway and at 1 km from

Sarvestan City which is the capital of Sarvestan County. Sarvestan Palace, a global

monument, is located at 7 km from Roya tourism complex. Sarvestan City is the

connection way between Hormozgan Province whose capital is Bandar Abbas, Sistan and

Baluchestan Province whose capital is Zahedan, and Kerman Province whose capital is

Kerman and Fars Province Capital. This specific location has changed Sarvestan into

East Gate of Fars.

“Infrastructures and utilities of Roya Tourism Complex”

To execute the project of Roya Tourism Complex, all required infrastructures and utilities

including water, electricity, telephone, and internet have been provided and are being

currently exploited.

3

“Status of land and ownership of Roya Tourism Complex”

The area of the project land is 100 hectares. 40 ha of that belongs to the company and has

a single sheet formal title deed. The title deed is free and clear of liens. 60 of 100 ha is

considered for complex development plan which is in transfer stages.

In 30 ha of 40 ha which is owned by the company, Zeitun Garden has been built in

accordance with gardening technical principles using drip irrigation method, and

cypresses have been planted in its entry passage to epitomize the identity of Sarvestan

City.

All People of the World Construction, Development, and Investment Company is the

owner and holding investor of Roya Complex. This is a publicly held company and has

been established in 2007. The company currently has 18 legal shareholders and 96 natural

shareholders.

All People of the World Company is the first publicly held expert tourism company in

Iran and enjoys outstanding consultants, managers, and experts with very good technical

knowledge.

“Performance areas of Roya Tourism Complex”

Comprehensive plan of Sarvetan tourism region, of very high quality and beyond many

similar plans, has been prepared and approved by Ivan-e Naghsh-e Jahan Consultant

Engineers (one of the best consultant companies in Iran) with high expert and

professional examinations of the employer.

The plan involving 4 main areas or gardens including service garden complex, Zeitun

residential garden, fun and production garden, and global heritage garden and 10 subareas

or unique complex provides some services that will remain in every visitor’s mind.

Designing Roya tourism complex, “Roya” brand identity, peace and respect, has been

always taken into consideration, and it is hoped that proper execution and exploitation of

the project will create fellowship and empathy among all the people in the world.

4

The project sub areas are as follows:

1- Celebration and Ceremony Garden

2- Mall Garden Complex

3- Middle Way Service Complex

4- Motel Garden

5- Three Star Hotel Garden

6- Tribes Garden

7- Ornamental and Medicinal plants Garden

8- Garden for Planting Plants and Flowers

9- Fun and Sport Garden

10- Global Heritage Garden-Maquette

“Financial and economical assessment of the project”

Variant systematic and computer models can be applied to analyze investment plans

financially and economically. In the present study, Excel was first used for initial

processing of the data, and finally COMFAR III, presented by United Nations Industrial

Development Organization (UNIDO), was applied. In fact, this software has been

designed to simulate short term and long term financial and economic status of

investment plans in detail. In addition to financial analysis and prediction for economic

assessment, it compares internal resources with external resources and presents separate

plans for costs of production and construction periods. The software also calculates

break-even point for products or services in terms of production number and production

cost compared to time, cost, capital, financial resources as well as IRR, NPV, cost-benefit

analysis, and decision-maker points and presents them through various tables and charts.

Therefore, the project of Roya Tourism Complex was assessed economically and

financially by means of COMFAR III Software.

The abstract of the project economic and financial assessment is presented subsequently.

5

"BAMA” Group

Economic and Financial Assessment of

“Roya” Tourism Complex in Sarvestan

Using COMFAR III

(The first green tourism complex in Iran)

6

Financial and Economic Evaluation of

Sarvestan “Roya” Tourism Complex

1. Fixed investment costs

Land 133,338,720,000 Rial

Landscaping 17,347,100,000 Rial

Building 369,673,000,000 Rial

Furniture and equipment 73,700,000,000 Rial

Accessories 14,400,000,000 Rial

Protection and fencing 2,350,000,000 Rial

Total investment fixed costs 610,808,820,000 Rial

2. Expenditures before production 27,775,200,000 Rial

3. Working capital 10,037,194,444 Rial

4. Total investment of the project 648,621,214,444 Rial

5. Yearly production costs 1,173,080,000,000 Rial

6. Yearly sale revenue 1,526,706,000,000 Rial

7. Investment Internal Rate of Return (IRR) 38/59 %

8. Direct job creation 390 individuals

9. Indirect job creation 1000 individuals

7

Fixed investment costs of Roya Tourism complex

1. Land

Financial and Economic Evaluation of Sarvestan “Roya” Tourism Complex

Area Sub area Land Price

M2

Rial Rial

1 Service Garden

Complex

Celebration and

Ceremony Garden 5.698 1,200,000 6,837,600,000

Mall Garden Complex 16.864 1,680,000 28,331,520,000

Middle Way Service

Complex 17.635 1,920,000 33,859,200,000

Motel Garden 38.710 1,440,000 55,742,400,000

3 Star Garden Hotel 5,950 1,440,000 8,568,000,000

Total 84,857

133,338,720,000

8

2. Landscaping


Area Sub area Yard Price

M2

Rial Rial

1 Service Garden

Complex

Celebration and

Ceremony Garden 4,313 500,000 2,156,500,000

Mall Garden Complex 11,882 300,000 3,564,600,000

Middle Way Service

Complex 6,460 500,000 3,230,000,000

Motel Garden 32,580 200,000 6,516,000,000

3 Star Garden Hotel 4,700 400,000 1,880,000,000

Total 59,935

17,347,100,000

9

3. Building


Area Sub area Building Price

M2

Rial Rial

1 Service Garden

Complex

Celebration and

Ceremony Garden 2,635 11,000,000 28,985,000,000

Mall Garden Complex 9,964 12,000,000 119,568,000,000

Middle Way Service

Complex 10,735 12,000,000 128,820,000,000

Motel Garden 6,080 10,000,000 60,800,000,000

3 Star Garden Hotel 2,250 14,000,000 31,500,000,000

Total 31,664 369,673,000,000

10

4. Furniture and equipment


Area Sub area Rial

1 Service Garden

Complex

Celebration and

Ceremony Garden 3,400,000,000

Mall Garden Complex 16,600,000,000

Middle Way Service

Complex 30,000,000,000

Motel Garden 16,700,000,000

3 Star Garden Hotel 7,000,000,000

Total 73,700,000,000

11

5. Accessories


Area Sub area Rial

1 Service Garden

Complex

Celebration and



Middle Way Service

Complex 4,150,000,000



Total 14,400,000,000

12

6. Protection and Fencing


Area Sub area Fencing Price

M2

Rial Rial

1

Service Garden

Complex

Celebration and

Ceremony Garden 600 500,000 300,000,000

Mall Garden Complex 1,000 500,000 500,000,000

Middle Way Service

Complex 500 500,000 250,000,000

Motel Garden 2,000 500,000 1,000,000,000

3 Star Garden Hotel 600 500,000 300,000,000

Total 4,700 2,350,000,000

13

Expenditures before Production of Roya Tourism Complex

Financial and economic evaluation of Sarvestan “Roya” Tourism Complex

Area Sub area Expenditures before Production

1

Service Garden

Complex

Celebration and



Middle Way Service

Complex 8,774,250,000



Total 27,775,200,000

14

Yearly Production Costs of Roya Tourism Complex


Area Sub area Type of production costs

1

Service Garden

Complex

Celebration and



Middle Way Service

Complex 226,780,000,000



Total 1,173,080,000,000

15

Yearly Sale Revenue of Roya Tourism Complex


Area Sub area

Sale

Price (Rial)

1

Service Garden

Complex

Celebration and


Mall Garden Complex 1,162,000,000,000

Middle Way Service

Complex 280,000,000,000



Total 1,526,706,000,000

16

COMFAR III Expert [email protected]

Summary sheet

Project title: Roya Torism Complex Project description: Service garden complex Date and time:

Project classification: New project Joint-venture project

Construction phase: 07-96 – 06-98

Length: 2 years

Production phase: 07-98 – 12-107

Length: 10 years

Accounting currency: RIAL (RIAL) Units: Absolute Local currency: RIAL (RIAL)

INVESTMENT COSTS

Total Total Total Construction production Investment Total fixed investment costs 610,808,820,000.00 0.00 610,808,820,000.00 Total pre-production expenditures 27,775,200,000.00 0.00 27,775,200,000.00 Pre-production expenditures (net of interest ) 27,775,200,000.00 0.00 27,775,200,000.00 Interest 0.00 0.00 0.00 Increase in net working capital 0.00 10,037,194,444.44 10,037,194,444.44

TOTAL INVESTMENT COSTS 638,584,020,000.00 10,037,194,444.44 648,621,214,444.44

SOURCES OF FINANCE Total Total Total Construction production inflow

Total equity capital 638,584,020,000.00 0.00 638,584,020,000.00 Foreign 0.00 0.00 0.00 Local 638,584,020,000.00 0.00 638,584,020,000.00 Total long-term loans 0.00 0.00 0.00 Foreign 0.00 0.00 0.00 Local 0.00 0.00 0.00 Total short-term loans 0.00 0.00 0.00 Foreign 0.00 0.00 0.00 0.00 Local 0.00 0.00 0.00 0.00 Accounts payable 0.00 231,269,319,058.64 231,269,319,058.64

TOTAL SOURCES OF FINANCE 638,584,020,000.00 231,269,319,058.64 869,853,339,058.64

INCOME AND COSTS, OPERATIONS First year Reference year last year 07-98 – 12-98 07-98 – 12-98 107

SALES REVENUE 1,526,706,000,000.00 1,526,706,000,000.00 1,526,706,000,000.00

Factory costs 1,172,080,000,000.00 1,172,080,000,000.00 1,172,080,000,000.00 Administrative overhead costs 0.00 0.00 0.00

OPERATING COSTS 1,172,080,000,000.00 1,172,080,000,000.00 1,172,080,000,000.00 Depreciation 23,006,150,000.00 23,006,150,000.00 46,012,300,000.00 Financial costs 0.00 0.00 0.00

TOTAL PRODUCTION COSTS 1,195,086,150,000.00 1,195,086,150,000.00 1,218,092,300,000.00 Marketing costs 1,000,000,000.00 1,000,000,000.00 1,000,000,000.00

COSTS OF PRODUCTS 1,196,086,150,000.00 1,196,086,150,000.00 1,219,092,300,000.00

17

COMFAR III Expert [email protected]

Summary sheet

Interest on short-term deposits 0.00 0.00 0.00

GROSS PROFIT FROM OPERATIONS 330,619,850,000.00 330,619,850,000.00 307,613,700,000.00

Extraordinary income 0.00 0.00 0.00

Extraordinary loss 0.00 0.00 0.00 Depreciation allowances 0.00 0.00 0.00

GROSS PROFIT 330,619,850,000.00 330,619,850,000.00 307,613,700,000.00

Investment allowances 0.00 0.00 0.00

TAXABLE PROFIT 330,619,850,000.00 330,619,850,000.00 307,613,700,000.00

Income (corporate) tax 0.00 0.00 0.00

NET PROFIT 330,619,850,000.00 330,619,850,000.00 307,613,700,000.00

RATIOS

Net present Value of Total Capital Invested at 20.00% 619,999,435,396.92

Internal rate of return on investment (IRR) 38.59 %

Modified IRR on investment 38.59 %

Net Present Value of Total Equity Capital Invested at 30.00% 210,210,911,652.14

Internal rate of return on equity (IRRE) 38.59 %

Modified IRRE in equity 38.59 %

Net Present Value discounted to 12-96

We hope for that day in which the sun in Roya Land will be always in the middle of the sky …

Abstract of Studies and Measures Report Regarding · COMFAR III Expert [email protected] Summary...

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