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Floating Restaurant at Sabarmati Riverfront Development of Floating restaurant at Sabarmati riverfront Tourism Government of Gujarat Contents Project Concept 3 Market Potential 4 Growth Drivers 5 Gujarat – Competitive Advantage 6 Project Information 8 - Location/ Size - Key Players/ Machinery Suppliers - Infrastructure Availability/ Connectivity - Raw Material/ Manpower - Key Considerations Project Financials 13 Approvals & Incentives 14 Key Department Contacts 15 Page 2 Project Concept About riverside floating restaurant A riverside restaurant or a floating restaurant is usually a restaurant built on a large flat steel barge floating on water. Some times retired ships are also refurbished and given a second term as a floating restaurant. Some of the floating restaurants in India are- 1. Majastique-1 operated by Majas Travels, Tours and Logistics at Kochi 2. Flor Do Mar operated at Morjim Beach, Goa A revolving restaurant or rotating restaurant on the other hand is usually a tower based restaurant eating space designed to rest on the top of a wide spherical rotating base that operates as a large turning table. The building remains stationary and the diners are seated on the revolving floor with all the other basic restaurant features in place. The main aim of such restaurant is to provide a scenic view to its diners from a height. About Sabarmati riverfront Sabarmati river has been an essential component in of daily life in Ahmedabad since when the city was established in 1411 along the river side. Apart from being an essential source of water, it provides a view of cultural activities and historic significance of various events. During the dry seasons, the fertile river side became a good farming land. In modern times, it also offered meeting spot for different informal economic activities and markets. In the due coarse of time, the intensive usage of the riverside took its toll on the beauty of the river front. The Ahmedabad Municipal Corporation (AMC) formed Sabarmati Riverfront Development Corporation Ltd (SRFDCL) in May 1997 funded by Government of India with an estimated capital of INR 12 billion for riverfront development. Environmental Planning Collaborative (EPC) prepared the feasibility report in 1998. In 2003, the project was planned to cover a 11.25 km stretch of the riverfront and reclamation of 202.79 hectares (501.1 acres) and was put on fast track. Construction on ground started in 2005 and majority of the planned infrastructure was completed by 2012 and was opened to Public the same year. Page 3 Market Potential Indian Restaurant Industry Overview Restaurant Industry composition 2015 3% 32% 45% 12% 7% Fine Dining Casual Dining Quick services restraurants Cafes Others Quick Service Restaurants (QSR) and casual dining are the two most popular formats that form 45% and 32% of the overall market respectively. Favourite outdoor activity M Restaurant market in India is mostly led by unorganised segment in 2015 and even though in the future it will decline significantly over the next 4-5 years, it is likely to remain 10% 18% more than 60% of the market. M The Indian economy is expected to add 25% another trillion USD to its GDP in next 5-6 years, ensuring per capita CAGR of 12% from 2015 to 2020. As a result income growth 39% 8% would lead to a rise in the number of middle class customers. M High expenditure on food and related items Eating out Hangout with friends coupled with the large portion of the Goingout with family None population being a part of the target market, Others the growth of this sector is expected to be high. Indian Restaurant Industry Overview M Indian Industry grew 11%from 2013 to 2014 Restaurant Industry size in India to reach USD 151.6 billion in 2014. (in billion) M Full-service restaurants registered a slowdown in growth due to changing taxation structure in 2015. 151.6 136.6 M Age profile of the people eating out 123.0 92.1 M 18 to 20 years – 18% 70.5 M 21 t 30 years – 40% M 31 to 40 years – 31% M Above 40 years – 11% FY10 FY11 FY12 FY13 FY14 Page 4 Growth Drivers M Rise in foreign tourist arrivals (FTAs) and tourist movement within the country has driven growth in the hospitality industry. The number of FTAs reached 7.4 million in 2014, up 27.6% from 2010. Increase in M India is known as a destination for spiritual tourism and also offers tourist cruises, adventure, medical, wellness, sports, film, rural and religious movement tourism. Travel and tourism is the third largest forex earner for India, which contributed US$19.7 billion in 2014. M These factors ensure sufficient potential customers for floating restaurant. M Campaigns such as Khushboo Gujarat Ki, Incredible India, Athithi Devo Bhava launched to attract tourists from locations outside Gujarat. M FDI under the automatic route in tourism and hospitality is allowed up Policy support to 100%, subject to applicable regulations and laws. M Capital subsidy programme for budget restaurants. M Exemption of Fringe Benefit Tax on crèches, employee sports and guest house facilities would enable lower operative costs. M The GoI has made efforts to improve and upgrade infrastructure facilities at important tourist destinations, thereby, improving Improved accessibility to such services. infrastructure M FY16 Union Budget allocated INR14.8 billion toward infrastructure development for destination and circuits, domestic / overseas promotion and publicity M Online and mobile based booking is picking up in restaurant industry Apps for web with the emergence of companies such as Swiggy, Zomato operating and mobile in Ahmedabad and other major cities as well. These apps will help in based booking attracting young audience. M The state is one of the least corrupted in the country with an anti- Apps for web corruption index of 0.69. and mobile M Gujarat leads in project clearance in coastal areas with a success rate based booking of 93%. M There are sites that compare the results from all these sites to provide Growing cheapest table booking options to the customers. These aggregators aggregators sites helps customers in comparing services of various restaurants. M Examples are Zomato, Tripadvisor etc. Page 5 Gujarat - Competitive Advantage Gujarat tourism industry CAGR: CAGR: 615 11 8.0% 12.5% 465 9 316 6 198 4 2011 2015 E 2020E 2025E 2011 2015 E 2020E 2025E Source: Tourism Policy for state of Gujarat(2015-20) M The total flow of tourist is expected to record an increase over the years M This is attributed to the growing prominence of the state as a major business hub. M As per HVS State Ranking Survey 2015 of Hospitality Industry, Gujarat stands fifth among the Indian states, scoring high in the ease of doing business, Gross State Domestic Product (GSDP) per capita and intangible parameters M In FY16, maximum number of tourist (73.6%) visiting Gujarat where from within the state i.e Gujarat origin. M In FY16, 44% of the total Tourist visiting Gujarat fall under the economic category whereas 20% each was shared by medium class and Luxury class tourist. M The gross tourist flow in Gujarat reached 38.3 million in FY16, growing at a CAGR of 14.1% Gross tourist arrivals in Gujarat over the period FY11-FY16 FY16 (in million) M Ahmedabad, Ambaji, Dwarka, Surat and Vadodara accounted for ~42% of gross tourist 38.3 flow to Gujarat in FY16 32.7 25.4 28.8 19.8 22.4 M Tourist flow to Gujarat in FY16 was driven by business purpose (56%), followed by religion (35%), leisure (7%) and other purpose (2%) FY11 FY12 FY13 FY14 FY15 FY16 Tourist flow to Gujarat – Origin Tourist flow to Gujarat – Class (FY16) (FY16) 1.9% 16% 24.5% 44% 20% 73.6% 20% Within Gujarat Other Indian states Foreign Economy Luxury Medium High Page 6 Domestic Tourists (in million) International Tourists (in million) Gujarat - Competitive Advantage Tourist flow to Ahmedabad Tourists (in million) Destination wise tourist destination 17% CAGR: 29% 33% 54,65,433 45,99,488 16% 32,46,987 28% 2012-13 2013-14 2014-15 Within Gujarat Other Indian state NRI Foreigners Tourist purpose 2015-16 94% 2% 1% 3% Business Leisure Spiritual Others Overall Ahmedabad has seen a tremendous growth in tourist arrival, majority of the incoming tourists are Foreigners and reason of visit for most of them is Business purpose. India has received ~US$6.70 billion worth of Foreign Direct Investment (FDI) during the period April 2000-December 2015 in food serving related sectors. The Confederation of Indian Industry (CII) estimates that the food processing and related sectors have the potential to attract as much as US$33 billion of investments over the next 10 years and also generate employment of nine million person-days. Page 7 Project Information Sabarmati Riverfront Master Plan Sabarmati Riverfront project represents an opportunity to create a common platform for business as well as leisure activities at the edge of the river on the eastern and western sides of Ahmedabad. By bordering the river to a persistent width of 263m, riverbed land has been reclaimed to create a 11.25 kms of public riverfront on both sides of the banks. The total land area reclaimed is 202.79 hectares. East Promenade – 11.3 km On Boarding and Off West Promenade – 11.2 km boarding services Park – 15 ha Enquiry counter and reception center Plaza – 2 ha Medical assistance and Parking space Security measures M The governing body and grievance redressal body is Sabarmati River Front Development Corporation Ltd.. M Its office is located in the riverfront, near Nehru Bridge. Page 8 Project Information Value chain for floating restaurant Trained Staff Marketing (Promotion & Advertising) Service Exclusive dinner set & equipment Quality Ingredients Location & interior design Quality of food Suggested dining options and features 1.Indoor Dining 2.Outdoor Dining 3.Sunset Dining 4.Corporate events 5.Wedding arrangements 6.Rooftop Bar Page 9 Project Information Responsibilities sharing matrix Gujarat Tourism SRFDCL or Private Operator private player Terminal development On board and Off Floating Restaurant – and O&M board services Deployment and O&M Other basic Marketing and infrastructure Promotion Major Restaurant chains in Ahmedabad Name of Restaurant Cuisine Location Swati snacks Indian, Fast food, Ellisbridge, Vegetarian Ahmedabad Barbeque Nation Indian, Barbecue, Asian, 1.
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