Future Outlook and Trends and Industry Forecasts

Current trends in South-Eastern Europe point toward growth in annual tourism. A very closely neighboring Croatia increased a percentage point in annual growth, resulting in 11.25 million tourists. Serbia, directly east of Montenegro, expects $1 billion in tourism revenue this year. Romania experienced a 25% increase. Montenegro is an untapped resource that may surpass the appeal of its neighboring countries if effectively applied.

            There have been studies that touch upon the effects of the post-communistic state. While border constraints and economic troubles have negatively affected Southeastern European countries, there is a capacity for sustainable tourism. The standardization of the Euro and its purity in the region’s eco system leaves potential for a huge amount of growth and tourism profitability.

            Not only is there growth potential for tourism in South-East Europe, but a project like this cannot be found anywhere else in the industry. While South-East Europe has its tourist appeal, the first and only ecological country in the world remains Montenegro. Furthermore, there is no other hotel that combines culture, food, recreation, arts, local society, and ecology in the way that Ecology of the Soul does. Therefore, it can be said that this project is the introduction to a new industry, or a new addition to the tourism and hospitality industry that cannot be found in this way anywhere else. Of course, every part of this project can be found elsewhere, but not all in one place, and certainly not in Montenegro.

Industry Forecasts

2008 Forecasts	domestic	international	Total
- nights -	950,000	7,080,000  + 10%	8,030,000

Revenues			Total
			€549.6mil + 14,5%

Jobs			Total
			€16,200  + 8%

Description of Venture

We will register a new investment company, which will grant us the deposit for the plot chosen and anticipated for the realization of the project, and the remainder will serve as cash funds that will be available for that investment. The market value of the plot is evaluated as 3.187.800 EUR.

I will construct a proposition to be delivered to the IFC (International Finance Corporation) in order to enter the project with an application of 20 percent of the necessary funds, and to approve a credit for the investment company for remaining part of funds needed for realization of project. The investor will also invest part of the value of construction works that they will execute into the project. In this way, there will be more than one source of investment, and less investment risk will be weighed on a single company entity, but more investment power will be applied to the project.

Rough investment value for the hotel is approximately 55 million EUR, and it includes construction expenses, expenses of complete engineering of the hotel and accompanying facilities, and project supervision. That price does not include infrastructure expenses, but it does include expenses for equipping the hotel. The cost of equipment is approx 12 million EUR, which includes all hotel, fitness, and diagnostic center equipment.

Special expenses would be a result of the costs of preparation of all programs that will be done by the Team, project management, as well as expenses for mediation, in relation to obtaining credit assets. This will be determined later on, when the prices of individual programs are developed and the amount of credit assets are verified for the investors and further industry analysis pertaining to the application of this hotel and related facilities.

Following official discussions that I will have with the representative of IFC, I will consider the possibility of offering Startlight majority stock share to the hotel, i.e. they will be the owner of the hotel and will have the right to make decisions belonging to the hotel and in regards to executing activities of the hotel. I can say with certainty that IFC would think positively about this possibility and that they would be ready to approve funding to Startlight if they see interest in that the project that we are presenting.

Products and Services

Caffe Theater. A special area for up to 80 persons would be arranged as theater caffe, where esteemed Montenegro actor and director Slobodan Marunović would have nights with well known artists in order to familiarize guests and domestic people with a new area of culture and social development. To add to this cultural enrichment will be native dishes and desserts that will be served in the caffe, and an ambiance that will remind patrons where they are and the beauty with which they are surrounded.

Crystal Hall. Crystal hall, for approximately 300 persons, will be the special space for ceremonial events. In this hall, we will organize special events such as the Elite ball, an annual dance that will serve to collect funds that will be given to charitable causes like the Foundation for gifted children. This organization in particular gives assistance to children whose parents do not have enough money to educate them or fund socially uplifting events such as  New Year celebrations, proms, weddings, and so on.

In addition to the Elite Ball, in that space we would also organize various seminars, theater plays and concerts. The Hall would be special place for culture, not only for hotel guests but also for other people. In other words, the hall would be open to the public, especially in the case of events, and will have its own box office and opportunity to purchase tickets online.

Great Hall of the Hotel. We will have the local population present their domestic products once a week in the Great hall of the Hotel. These products would be offered to guests to purchase them in the style of a high-class bazaar. As patrons browse and purchase the various local products on display, contemporary native Montenegrin music will be played in the Great Hall. There would be also souvenir shop, where they could buy different items, which will remind them on ethnical specificity of Montenegro state during the rest of the week while this event is not taking place.

We would organize permanent exhibit of the art works, which would be for sale. Great Hall would be a special place, which would not only serve for reception and departure of guests, but it would also be the place for special programs, and it would make that space more pleasant to guests and give them special feeling. Not only will extra revenue be derived from this area and the ability to purchase domestic products and fine, original pieces of art, but the cultural quality of the hotel will be improved. If these programs in particular prove successful, this hall can thus serve as a credible venue through which artisans can give their work exposure.

Wellness Center. The health program would be organized in the special Wellness and fitness center, which will also have an attached aqua park and a big swimming pool complex, whose preliminary design is being prepared by top experts of Makro5 LLC company from Ljubljana. This company can be found at www.makro5.com, and is represented by Davorin Šuštar. Within the Wellness center, there will be a bar with fresh squeezed fruits and vegetables and various teas according to recipes by Medical Scientist Damijan Jurjeca, specialist in medical Biochemistry, who has been working in the field for more than 20 years. In the wellness center we will use only natural cosmetics made in accordance with prescriptions of medical scientist Dr. Jurjec and other selected experts. We will also establish connections with the Herbal pharmacy of Ostrog monastery.

Within the Wellness center, according to the advice of Medical Scientist Jurjec Damijan, who has been running his lab in of the well known Zdravilišče in Republic of Slovenia for over 20 years, and who also recently began to supervise laboratories throughout Slovenia, we will organize our own diagnostic laboratory. In this way, we establish basic necessities and if needed, blood tests and stress exposure measurements, in order to individualize programs for each patron. The guests would get the results in one hour from taking the sample, so he or she could immediately get the special program adapted for him or her.

We will pay special attention to the program for managers, who will get basic analyses and will form a special detoxification program for body and advice decrease the stress on lower level that is an every day part of their lives, and also, to warn them on possible diseases that could be threatening them. Also, we will pay special attention to programs for women in and just before menopause. And for small children, we want to show them the significance of a healthy life.

We will have several types of massages, and guests will be able to relax and enjoy the baths with special combinations of herbs picked from untouched Montenegro nature to compliment their relaxation experience. Also included in the program will be aromatherapy with essential oils, facials and body baths with which we will use special type of clay, a beauty program with special herbal crèmes, and many other compliments to a tension-relieving experience.

The area of the aqua center is anticipated to be 3.164m2. The swimming pool complex would be partially enclosed (700m2) and partially open-air (500m2). The open and closed areas will be connected, and distinguished only by the fact that a portion is covered. A resting terrace will be included and similarly divided, with the enclosed part measuring 560m2, and the open-air part measuring 400m2. The swimming pool complex will have a capacity of 500 guests during the winter period and up to 900 during the summer period. Water surfaces will be enhanced with numerous water and light effects that will both captivate and relax patrons.