Analysis Of Middle East Tourism Company Tourism Essay

Executive Summary

Dubai, one of the top in the list with figure of tourers sing across the metropolis all over the twelvemonth, being situated at the seashore of the Arabian Sea gives another star to the beauty of this metropolis, has more and more range for Travel and Tourism Business. With a fantastic substructure of the metropolis, inexpensive gold points and a large range for shopping and all types of nutrient gives it an border over the other tourer topographic points. Such a characteristic of the metropolis gives us an chance to get down up with a concern in the field of Travel and Tourism in Dubai.

Middle East Tourism Agency ( META ) is a company which will be located in one of the most popular country of this beautiful metropolis. META is a travel and touristry company which will offer all the types of tourer services to its clients including Airline, Cruise, Roadways tickets, ushers, luxury autos for going, etc. META will be a joint partnership concern between Mr. A and Mr. B, where both will hold the equal portion in the concern, i.e. of 50 per centum each.

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Middle East Tourism Agency is Joint Partner ship house and Mr. A and Mr. B is the co- laminitiss of the company. This company will dwell of a entire on the job squad of more than 100 members which will function the tourer coming all around the universe. Every worker in the direction squad of META has a perfect specialisation in the field in which he or she works which will supply an easiness to the clients.

There are a figure of services which will be offered by META to the tourers. These services are as follows:

Airline Travel Tickets

Cruise Tickets

Luxury Cars and all other types of autos for the tourers harmonizing to his budget

Ushers for the tourers

Tourist Buss for all frequence of groups

All the above services will be available in different types of travel bundles every bit good. There will be two wide classs of this travel bundle:

Local Travel Package

International Travel Package

The mark market for META will chiefly be the tourers coming to Dubai every bit good as the people from Dubai traveling for a vacation trip to some other state. META will non merely supply vacation or holiday trips to its clients. It will besides offer concern trips to them. Present state of affairs of the travel industry in the metropolis is non that awesome as it was one twelvemonth back because of Dubai Financial Crisis in November 2009. This means that this will be right clip to get down up the concern as the metropolis is emerging from the crisis. Main rivals of META will be Alshamil Travel and Tourism, Air link, Dubai Ideal Travel, Desert Safari, etc.

Loan Request: AED. 3,000,000 from Abu Dhabi Islamic Bank and AED 3,000,000 from Dubai Islamic Bank

Start up cost: AED 5,040,000

Expected Gross saless of the company is AED 400,000 per month in the first twelvemonth

Net income in the first twelvemonth is AED 324,000

Business Vision

“ To supply clients a excellent travel experience in lowest possible disbursal ”

Mission

There are few concern mission of META which company will follow in order to achieve success in the nearest hereafter:

A full satisfactory services to the clients so that following clip it will wholly be merely META which will help them

Attainment of mark gross revenues every month

Maximization of net income with maximal degree of client satisfaction

Reach planetary with sub units all across the universe

Core Valuess

Customer Satisfaction

Different types of offers of travel bundles to pull clients

Most educated and experient direction squad

Aims

There are two types of aims of the company:

Short Term aim

To be at the top in the following 2 old ages in Dubai

Three more centres in Dubai

Long Term Objective

To be at the top in UAE in the following five twelvemonth

Centers in every large metropolis of UAE

Key Success Schemes

On clip services to the clients

Different types of price reductions of Travel bundles

Fast range will most good mannered services

Industry Analysis

Market size, tendency, and attraction

UAE authorities is one among those which promote the travel and touristry a batch. There are assorted benefits and a batch of chances given by the authorities of Dubai itself to the new comers in this industry. In the recent old ages, authorities has taken up a new method for travel and touristry which has about wholly changed the scenario of the economic status of travel and touristry industry in Dubai. Taking about the full state, travel and touristry industry takes about 18 per centum of GDP of UAE which is a immense per centum ( Tourism contributes 18 % to Dubai ‘s GDP per twelvemonth, 2007 ) . That excessively in instance of Dubai, this per centum is higher. So there are tonss of political supports for my venture. Example of this is ‘The fifth edition of the Future Forum opens in Abu Dhabi today at the Emirates Palace Hotel. The two-day “ Future Forum 2008 ” is being organised by the UAE Foreign Ministry in coaction with the Nipponese authorities. The UAE will co-chair the forum with Japan, being the current president of the G8. ‘ ( BMENA 5th “ Forum for the Future ” Sub-Ministerial and Civil Society Joint Meetings conclude today, 2008 ) Another illustration “ New York – Bilateral dealingss between the UAE and several states and issues of common concern were at the Centre of meetings which brought together UAE Foreign Minister H.H Sheikh Abdullah Bin Zayed Al-Nahyan and leaders and counterpart foreign curates of other states. ( UAE FM Meets Abbas, Blair, Karzai in New York ) ”

There has been a immense fiscal crisis that has hit Dubai in the recent yearss but the present scenario say that the roar is once more touching the metropolis which means that there are immense chances for the new participants to come in in the selling ( About Dubai, 2009 ) . It has already been the hub of travel and touristry in the full Middle East. Not merely the holiday or the vacation trips, concern trips can besides be a large concern for the company because Dubai is a metropolis which the industry hub for UAE every bit good. All the corporate offices are at that place in this metropolis merely.

Government besides takes involvement in the travel and touristry in the state because it knows that this industry is acquiring a immense sum of money for the authorities. With an addition in the globalization of the universe, the touristry has affected the economic system of the state and the economic system of Dubai has more and more dependent on the travel and touristry. Besides Dubai is considered to be a really large tourer finish of the people from all over the universe. The following tabular array will demo the growing in the touristry in the gulf states in the recent old ages:

Another factor which can take to the tendency of big figure of tourers in the state is because of the beauty of the comeuppances in the state. Alone undertakings such as man-made ( palm Jumeirah, thenar Jabel Ali ) islands and tallest tower in the universe New island are pulling tourers to come. In the term of security UAE seemed to be really safe topographic point so this factor is besides assisting this industry.

Customer ‘s analysis

Our mark clients will be:

Peoples from Dubai traveling to some other topographic points for vacations

Peoples from other topographic points coming to Dubai for holidaies or for concern meets

Honeymoon travel ( freshly married twosomes )

Business groups

Competitor ‘s analysis

There are some companies which are running from a really old clip. These are some of the of import participants of the industry. Examples of such companies are Emirates and Dnata. These are the companies which are at that place in the market for the past many old ages and therefore they can give immense competition to META. To retain in this competitory we have to supply services at low cost and we have to supply some complementary services besides. It gives a menace of detaining break-even point.

There is a list of some of the of import companies which can give immense competition to META:

Al Futtaim Travel

Al Tayer Travel

Kanoo Travel

Sharaf Travel

Al Rais Travel

SNTTA

Al Naboodah Travel

Selling Scheme

It is evidently necessary for META to hold a stiff and strong selling scheme in order to turn every bit fast as possible. Marketing schemes of META will strictly dwell of assorted constituents which will assist the company to acquire promoted globally because it is non merely the people of UAE which are needed to acquire cognizant of the services but more significantly it is people from all across the universe who are be aftering to see Dubai or any other portion of the universe need a proper information about the company.

Mission statement of selling section

To acquire a high degree of publicity through assorted advertisement runs and all other kinds of publicities

To make at a planetary degree every bit shortly as possible

To market META in such a manner that people will wish to avail the services from the company

To achieve a really high trade name value through publicity

Marketing Mix

Marketing mix is a scheme which will state the company the way at which it should head so that to achieve an appropriate degree of marketing satisfaction or the promotional satisfaction. In this subdivision, we are traveling to specify assorted of import constituents of selling schemes for META.

Product and service

Our merchandises and services are explained in full item in the following subdivision but in this portion of the analysis, we are traveling to see how selling schemes help in set up the services of Middle East Tourism Agency.

Air Line Travel Tickets and Cruise Tickets: The installation will be available on our web site and along with that links will be provided on assorted societal networking sites, other travel networking sites like makemytrip.com, assorted advertizements will be given on the newspapers, price reduction vouchers for air hose tickets will be distributed, any specific air hose, say Fly Emirates will be contacted so that we can sell their tickets and do concern with them every bit good as with our clients. In this term, we will handle as distributers of Fly Emirates.

Luxury Cars and all other types of autos for the tourers harmonizing to his budget: This is once more a different type of service which we will hold to advance a batch. This service of META can be promoted on the web site evidently and through all the promotional standards but along with that this will besides be done through our cabs itself. Our cabs will hold the toll free figure written on its dorsum so that one can easy see and dial for an easy cab. This will non merely assist in making cabs concern but through this people will cognize about the full company and its services which would be really helpful for us. Same is the instance with the tourer coachs.

In order to advance our services we will hold to give assorted price reductions to our users though assorted jazz band bundles. This will cut down the cost of the client and besides will let us to supply our all the services to one individual individual which will increase the measure of the concern.

Promotion

There are assorted manners of publicity which are to be applied for marketing the services of META. Promotion activities are considered to be really of import constituent of marketing schemes of any company. In order to do the public aware of the company, these activities are extremely needed. Following are some of the promotional activities with their description:

Ad on Internet

Ad of META ( its web site ) will be given on assorted societal networking sites, through assorted dad ups, etc. will be given. These advertizements will be on contract footing in which company will hold to pay the advertisement finish a considerable sum of money on monthly or semimonthly footing.

Ad on Television

Television is something which every one likes to watch. Kids for sketchs, Housewives for telecasting soaps and working hubbies for intelligence and current personal businesss. Taking advantage of such an issue META will give a slot of a minute or two in taking channels of the telecasting so as to achieve attending from the people

Ads on News Documents

A column in every taking intelligence paper will be fixed by the company so as to pull the local population of Dubai. The frequence has to be really high at the get downing stage so that it can hold a greater affect

Promotional Campaigns ‘

Promotional runs are besides an of import portion of promotional activities which can take topographic point. Ad in several meetings will be given so that people get to cognize about the company more

Ad on Roadside streamers, at Airports, etc

This is the most of import portion of advertizement because these are the chief musca volitanss from where the tourers begin. These advertizement will easy pull the tourers because these are the easiest manner for them to entree

Distribution of booklet at the airdrome and coach Stationss

Booklets will besides assist the company to acquire a batch of clients. These booklets will distributed to the clients at the airdrome anteroom and at the coach Stationss so that tourists get to cognize about META and can easy entree the services.

Pricing Schemes

META will hold a healthy border of 10 per centum in its pricing schemes. META will maintain the monetary values of all the services to be really much competitory. At the really initial phase, company will seek to do a batch of cost film editings so that maximal benefits it can supply to its clients but as the concern will continue and company will acquire settled into the market so it can alter its premium charged. Pricing schemes are to be really of import to make up one’s mind at the initial phase particularly because it will assist in developing a sense of competition in the market.

Pricing schemes will be like:

At the initial phase, more and more money will be spent on the publicity and it is non at all necessary to cut the cost from promotional activities because publicity is considered to be the root for all the activities

At the initial phase monetary values will hold to be really much competitory which means that it has to be either equal or more likely less than the rivals in order to derive the market

As the development in the stigmatization of the company proceeds, monetary values can be changed harmonizing to develop net incomes from the concern

The company will follow a life procedure rhythm in which get downing three phases, early phase, growing phase and adulthood phases will happen but there will be no worsening phase.

We will make pricing of the services for early phase as we have mentioned above and we will increase the monetary values till it is consumed by the clients because our chief purpose is to derive a immense market gaining control.

Distribution

There will be two types distribution of services which will take topographic point in META. One in which the company will be treated as a distributer for the other company and another is a instance when other company will be treated as a distributer of the META.

Let us discourse the first instance in which META will be treated as a distributer for the other company. This is the instance when META will be offering air tickets, cruise tickets, hotel suites to the tourer. It is rather obvious that here the company is playing as a go-between between the clients and the air line company or the sail company or the hotel. In the other instance, several other companies will be treated as the distributers of META where one can easy entree the coach services of META or cab services through some other company which will do the clients reach to our company.

Marketing Communication

Personal Selling: There will be a sort of door to door merchandising by the company. In this instance, our cabs will be standing on the airdromes or on coach bases to have the clients. It will non be at all necessary of the clients to hold an progress engagement, though it would be good, our excess easy cabs will be standing which will pick the tourer and instantly will state them about the full travel bundle. If the client likes it he or she can avail. The services will be easy available. At the airdrome anteroom, there will be a counter of META which will supply all the necessary services to the tourers. It will be an easy entree for the tourer because they would come to see the beauty of the metropolis non traveling here and at that place for repairing the traveling manner.

Public Relations: Public Relations are really of import parts of concern. It is extremely indispensable that to hold client satisfaction in order to turn in the hereafter. Therefore, in order to keep the public relationships, the company will engage some of the really good educated and extremely qualified public relationship directors who will see that how the client satisfaction degree has reached in the company. They will analyse the present scenario of the company give the recommendations on the footing of their understanding about public relationships.

Summary of Marketing Schemes

We can sum up the selling schemes in a manner that company at the initial phase will seek to concentrate on the publicity of its services in order to pull tourers from all around the universe. This publicity is necessary to a immense market gaining control for the company. In instance of pricing, at the initial phase, monetary values of the services provided by META will be extremely competitory in nature and company will seek to cut cost in order to give maximal benefits to the clients or the tourers. Selling schemes are an of import composing of the concern program and same is the instance with META, its selling scheme has to be really much successful in order for the concern to turn in the close and good as in the far hereafter.

Product/Service

We have given a brief description of services in the selling schemes but here in this subdivision we are traveling to acquire in item about the services provided by the company to the tourers. This subdivision will uncover the characteristics of the services and along with that how that services would be available to the clients. Every item about services of META is at that place in this subdivision.

Servicess

Description

Air Line Tickets and Cruise Tickets

Our travel bureau will supply air hose tickets to the tourers. It will work as an agent in this instance which will do the handiness of tickets easier for the tourer. Tourists will non necessitate to believe about any jobs ; merely dial and their air hose or cruise tickets will be ready with merely a little sum of agent fees.

Easy Cabs

This is one of the biggest constituents of concern of META. These luxury and household cabs will be owned by the company and these will run on the roads of Dubai so as to drop clients from one topographic point to another. These cabs will hold telephone figure written on their dorsums so that any destitute client may easy name on the toll free figure and engage the cab.

Tourist Buss

These coachs will be hired by a little or a big group traveling for tourist musca volitanss. This will be on a contract footing for one or two yearss in which the company will take the warrant to take the tourers from one tourer topographic point to another on a fixed sum of one clip payment.

Hotel Booking

META besides takes the warrant of hotel room engagement. Every types of hotel room can be available through the company runing from the cheapest to the luxury five star suites. Company will move as an agent between the hotel and the clients

Travel Combo Package

This bundle will dwell of every thing that a household traveling to a trip needs. For illustration: Airline or Cruise Tickets, remain at low-cost hotel ( every bundle will hold different degree of hotel suites ) Tourist coach or taxi what of all time be required. This will be circular trip service in which client will merely hold to pay the sum and do non believe about anything else. Every thing will be managed by the company itself.

Monetary values of the services

Servicess

Description

Air Line Tickets and Cruise Tickets

Harmonizing to the predominating rates of the Air Fare or the Cruise Fare + 10 per centum Extra as the agent cost

Easy Cabs

Ranging from 1Dh. To 5 Dh. Per Kilometer + Petrol cost

Or

Ranging from 1.5 Dh to 6 Dh. Per Kilometer

Tourist Buss

Ranging from 1 Dh. To 3 Dh. Per Kilometer + Petrol cost

Or

Ranging from 1.5 Dh to 4 Dh. Per Kilometer

Hotel Booking

Double bed room rates runing from 200 Dh. Per twenty-four hours to 2000 Dh. Per twenty-four hours

Travel Combo Package

It is sum of all the services that are to be customized in the jazz band battalion – 10 per centum price reduction the entire cost

Suppliers

There are several providers that we need to happen out in order to carry through our services. It is non at all possible for the company to give services to the clients. It can non develop its ain services. Hence the company needs providers. There are different types of providers that META will be holding:

Direct Suppliers: These are the providers which will straight provide services to the company in order to present it to the clients like Air line companies, Cruise companies, hotels, etc.

In direct providers: There are some services which will provided by the in direct providers of the company. These providers are non which are related to go but there are several other services like nutrient, etc. These in direct services will be provided by the in direct providers of the company.

Product Life Cycle

It has already been discussed earlier in this concern program that the merchandise life rhythm of the company will be same as the normal merchandise life rhythm but the lone difference will be that there will be no worsening phase in the merchandise life rhythm.

We can see from the above life rhythm of the company that it is perfectly normal as the other merchandise life rhythm but the lone difference between the normal and this merchandise life rhythm is that there is no worsening phase in this merchandise life rhythm which means that the company has planned non to worsen at any instance.

The debut phase in the phase is the phase at which the company will hold to repair the monetary values really much competitory in nature so as to increase the trade name value of the company. In order to make this company is ready to gain even zero net income at the initial degree. The chief motivation of the company is to do the people believe that META is one of the best in the field of travel and touristry in the state. In the following phase, i.e. Growth Stage Company will go on to turn ; monetary value will go on to be really much competitory in nature. Still company is traveling for a greater market gaining control but the difference is that company can increase the monetary values of the services in this phase because company would hold created a good trade name image in the market because of it nice service, so the clients would non mind paying some excess money.

At the adulthood phase, company will halt increasing monetary values and will come to a fixed monetary value which would non be increased or varied much. This phase would the phase where the company will be holding best concern and gaining the maximal net incomes.

Transcript right and Patent

The company will be a transcript right and will be a private limited house. There are several advantages for which the company is set to be private limited like there will be no incrimination on the proprietor of the company in instance of fiscal loss or the crisis in the company. Owners of the company will non be affected and there are several other advantages every bit good because of which it is considered to be a nice pick.

Name of the company will shortly be patent. This will be done so that no other Middle East Travel Agency can be opened in the hereafter after the popularity of META. Hence the company will be patent with the full name every bit good as with the short signifier.

R & A ; D

Main research in our company will be done in the field of operations and selling. Main occupation which will be done in the field of research and development will be the selling work because there is no such production which is taking topographic point in the company that research and development is needed but obvious a R & A ; D squad will be at that place in the company in order to research for the complete success of the company.

Management Team

Operational Plan

Operation in META will be supplying services to the clients. There will be a fixed set of form in which the operation in the company will be followed by the company. Operational program will be set in the undermentioned manner:

There will be different sections in the company like:

Financial Department

Human Resource Department

Selling Department

Operationss Department

Among the above four sections, operation section is the 1 which will assist in supplying services to the clients. In META, this operational section will dwell of Tourist Guides, Taxi Drivers, Agents, Information and Technology squad for proficient issues, etc.

Activities of operational program

Geting the orders from the web site and from face to face merchandising: This could be done in a manner that orders will come by the clients or the tourer through web site or through direct merchandising of the services. These orders will be collected by the operational section

Following work of the operational section is to supply services to the clients. This is more of import as it should be kept in head of operational members that client satisfaction is the chief thing for the company is playing. A individual, little error can destroy the things

Finally the collected money has to transferred to the fiscal section

Organizational Chart of META

MR. B ( Co-Owner )

MR. A ( Owner )

Head, Selling

Head, Finance

Head, Operationss

Head, Human Resource

Head, Non-Technical Operationss

Head, Technical Operations

LOWER LEVEL EMPLOYEES

The Organizational construction of META will be level so that there will be an easy entree of the employees to the employees of different degrees. We have shown the different types of employees which will be needed for the full organisational construction. The organisational construction of the company is rather level which means that every person has an entree to even at the higher authorization of the company. This will assist the workers to work proper and besides assist the senior to look at each and every degree that whether proper working is taking topographic point in the company or non.

In the below tabular array, we are traveling to state the exact figure of employees who will be needed by the company in order to execute the operations:

Department

Number of employees at the starting

Number of employees after one twelvemonth

Fiscal

3

6

Selling

25

35

Operationss ( Technical )

10

15

Operationss ( Non Technical )

Drivers and Conductors

30

Ushers

10

Agents

10

Drivers and Conductors

60

Ushers

20

Agents

20

Human resource

5

8

Miscellaneous ( 4th category Employees )

10

15

Entire

103

179

# above is the expected figure of employees which will be at that place in the company.

Affect of Growth in gross revenues

It is rather obvious that the above addition in the figure of employees will be due to the growing in expected gross revenues of the company. It has been expected that the company will turn in the close hereafter and will be able to increase its gross revenues up to a considerable border because of which means that it will be necessary to increase the figure of employees every bit good: we can see in the fiscal subdivision that there is about an addition of 100 per centum in the net gross revenues of the company in the clip span of one twelvemonth which means that there will be a demand for 100 percent addition in the figure of employees every bit good. In order to cut the cost at the initial degree the figure of employees which have been increased in non precisely 100 per centum.

Qualification of the employees

Employees of the company will non be like that merely. These people will be extremely qualified in their field. In the below tabular array, we are traveling to see what exact makings are needed for an employee to work in the company:

Department

Min Qualification

Fiscal

C.A

Maestro in Business Administration with Majors in Finance

Selling

Maestro in Business Administration with Majors in Marketing

Operationss ( Technical )

Bachelor in Technology or Planing

Operationss ( Non Technical )

Drivers and Conductors

Experience in Driving ( with full cogent evidence paperss )

Ushers

Experience in Guiding ( with full cogent evidence paperss ) . Should hold clear cognition of all the topographic points in Dubai

Agents

Class 12 but have to hold really fluid English

Human resource

Maestro in Business Administration with Majors in Human resource

Miscellaneous ( 4th category Employees )

No Qualification

There will be several stairss taken by the company in order to give employee satisfaction in the company. This is a necessary standard which most of the companies forget but META will take attention of its employees because there are the people who will acquire services for the company and who will acquire net incomes for the company, if they are annoyed so it will be a immense job for the company. Some of the employee satisfaction stairss which will be taken by the company are as follows:

Bonus will be given to the employees if they achieve the mark

Working hours will be rigorous for every person so that every organic structure in the company is on clip but in instance of the complete timings, extra payments will be done which will make a sense of motive for the employees and they can work good

There will no job for the employees in tiffin and dinner. Very delightful tiffin and dinner will be given to the employees at free of cost so that he can work without any job. If the employee is at a trip with the tourer so extra payment for his dinning will be given to him.

Nice working atmosphere will be provided to the clients so that they can work for hours with feeling tired.

Fiscal Analysis

Cost Projections

Start up Cost

Startup Expenses

Middle East Tourist Agency ( META )

Beginnings of Capital

Owners ‘ Investment ( name and per centum ownership )

Mr. A with 50 per centum ownership

AED 108,000

Mr. B with 50 per centum ownership

108,000

Entire Investing

AED 216,000

Bank Loans

Dubai Islamic Bank

AED 3,000,000

Abu Dhabi Islamic Bank

3,000,000

Entire Bank Loans

AED 5,500,000

Startup Expenses

Buildings/Real Estate

Purchase

AED 100,000

Construction

50,000

Other

10,000

Entire Buildings/Real Estate

AED 160,000

Capital Equipment List

Furniture

AED 20,000

Luxury Cabs

2,000,000

Medium Level Cabs

1,500,000

Buss

1,500,000

Other

20,000

Entire Capital Equipment

AED 5,040,000

Location and Admin Expenses

Utility sedimentations

10,000

Legal and accounting fees

10,000

Prepaid insurance

6,000

Pre-opening wages

Other

10,000

Entire Location and Admin Expenses

AED 36,000

Ad and Promotional Expenses

Ad

AED 50,000

Signage

50,000

Printing

20,000

Travel/entertainment

30,000

Other/additional classs

10,000

Entire Advertising/Promotional Expenses

AED 160,000

Other disbursal

20,000

Entire Other Expenses

AED 20,000

Reserve for Contingencies

AED 100,000

Working Capital

AED 200,000

Drumhead Statement

Beginnings of Capital

Owners ‘ and other investings

AED 216,000

Bank loans

6,000,000

Entire Beginning of Fundss

AED 6,216,000

Startup Expenses

Buildings/real estate

AED 160,000

Capital equipment

5,040,000

Location/administration disbursals

36,000

Advertising/promotional disbursals

160,000

Other disbursals

20,000

Eventuality fund

100,000

Working capital

200,000

Entire Startup Expenses

AED 5,716,000

Break Even Analysis

Breakeven Analysis

Middle East Tourist Agency

Cost Description

Fixed Costss ( AED )

Variable Costss ( % )

Variable Costss

Cost of Goods Sold

AED 600,000

100.0 %

Misc

AED 20,000

80.0 %

Direct Labor ( Includes Payroll Taxes )

AED –

0.0 %

Fixed Costss

Wages ( includes paysheet revenue enhancements )

AED 2,400,000

Supplies

AED 240,000

Repairs & A ; care

AED 60,000

Ad

AED 270,000

Chief part

AED 1,000,000

Accounting and legal

AED 21,000

Rent

AED –

Telephone

AED 12,000

Utilities

AED 21,000

Insurance

AED 100,000

Taxes ( Real estate, etc. )

AED –

Interest

AED –

Depreciation

AED ( 378,000 )

Assorted disbursals

AED 10,000

Entire Fixed Costss

AED 4,376,000

Entire Variable Costss

A

A

1.8

Breakeven Gross saless degree =

AED 4456212

Gross saless projection for three old ages

Three twelvemonth gross revenues and Net income Projection

Middle East Tourist Agency

2010

2011

2012

Gross saless

AED4,800,000

AED9,600,000

AED15,000,000

Cost/ Goods Sold ( COGS )

600,000

1,200,000

2,000,000

Gross Net income

AED4,200,000

AED8,400,000

AED13,000,000

Operating Expenses

Salary ( Office & A ; Overhead )

AED2,400,000

AED4,500,000

AED 8,000,000

Payroll ( revenue enhancements etc. )

Outside Servicess

120,000

240,000

408,000

Supplies ( off and operation )

240,000

480,000

816,000

Repairs/ Maintenance

60,000

120,000

204,000

Ad

270,000

540,000

918,000

Principle Sum

1,000,000

2,000,000

3,000,000

Accounting and Legal

21,000

42,000

71,400

Rent

Telephone

12,000

24,000

40,800

Utilities

21,000

42,000

71,400

Insurance

100,000

200,000

340,000

Taxes ( existent estate etc. )

Interest

Depreciation

( 378,000 )

( 28,350 )

( 2,126 )

Entire Expenses

AED3,866,000

AED8,159,650

AED13,867,474

Net Net income Before Tax

334,000

240,350

( 867,474 )

Income Taxes

Net Net income After Tax

334,000

240,350

( 867,474 )

Owner Draw/ Dividends

Adj. to Retained Net incomes

AED 334,000

AED 240,350

AED ( 867,474 )

The Appendix