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Commercially Confidential Information

Eco-Resort

Environmentally
Responsible
and
Sustainable Tourism

RRM EcoApril
Resort Prospectus
2012 1
Commercially Confidential Information

company overview

Eco Resort Concept


Roberts & Rose Mariculture Corp (RRM), a The eco-tourism project proposed by TM Roberts
proprietor-owned and registered Philippines and RA Rose is ideally located in one of the worlds
corporation, is poised to launch an eco-resort most bio-diverse marine ecosystems within the
alongside a major sea cucumber farming and Calamian Group of Islands in the Philippines.
global distribution business. Company facilities are Despite the areas ecological importance, the
ideally located on 15 square miles in one of the companys eco-resort and aquaculture business
most biodiverse and pristine marine ecosystems in and environmental management plan have been
the world. highly recommended and endorsed as a profitable,
sustainable and culturally worthwhile venture by
The companys business and environmental the ECAN Board (Environmentally Critical Area
management plans are supported and endorsed as Network) of the Municipality of Busuanga, Province
a for-profit, sustainable and culturally worthwhile of Palawan. All facilities and practices will be
venture by the ECAN (Environmentally Critical Area designed and managed to meet or exceed ISO
Network) Board of the Municipality of Busuanga, 14001 standards.
Province of Palawan. The mission of RRM is to
leverage competitive differentiating advantages to The proponents will build a unique eco-resort
become a distinctive outdoor recreation and adjacent to its sea cucumber project at
relaxation resort providing excellence in comfort Desambuang with cottages that are a blend of
and service at non-exorbitant prices. traditional Filipino and European accommodation
that provide exhilarating views of surrounding
mountainous islands. The resort will be situated on
a beachfront hill surrounded by pristine marine
Corporate and Legal Structure coral habitats ideal for outdoor hiking, diving,
Roberts & Rose Mariculture Corp fully conforms to fishing and sailing. Each cottage will be able to
the Philippine foreign investment and ownership accommodate four people. The resort will also
laws and regulations of the Republic Act 7042 include recreational facilities and functional rooms
also known as the Foreign Investments Act. The for guest enjoyment and convenience.
company qualifies as a new export business
through the Board of Investment (BOI) and Guests will have access to jungle trails, scenic
Department of Trade and Industry, which enables waterfalls at Concepcion, and unique local wildlife
the following: within the resorts property, such as local birds,
Tax exemptions for the first six years of monkeys and large bayawak lizards. Guests will
operation; and have the opportunity to visit the ruins of an old
Exemptions from payment of import Spanish fort on Culion Island and relax in the well-
duty and value added taxes (VAT) on known hot mineral springs at Coron.
new and secondhand imported goods
and equipment for the development of
RRMs fixed assets.

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Day trips by boat are also available to Calauit which are ideal for summer vacation or off-season
Island game reserve where local and African relaxation for both professional individuals and
wildlife, such as crocodiles, zebras, Calamian deer, families. Special educational programs will be
giraffes, impalas and bearcats live in a natural available for children, students and adults to
savannah setting. Visitors will be able to dive, fish collect, identify and look after live marine animals,
or sail within the resorts 25 square-kilometre area as well as enrol in photographic, sailing and SCUBA
of inter- and sub-tidal sea leases, as well as visit diving courses.
south sea pearl and sea cucumber farms. All of
these leases have been carefully selected to be
adjacent to marine parks and WWII wrecks for The following prospectus includes a descriptive
diving. overview of the resort, background experience of
the management team, description of cottages,
details of the resort staff required, and financial
The resort is just over an hours travel from Manila, information relating to annual revenue, capital and
making it both accessible and retreated from the operating costs for the first two years. For ease of
busy capital. The Calamian Islands have several presentation all costs are shown in USD with the
historical landmarks and small fishing villages, exchange rate at Philippine Pesos 42.00 = 1 USD.

Thomas M Roberts Robert A Rose

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Mission Statement:
Ethical and Sustainable Eco-Tourism in the Philippines

Guiding Principles:

To create a sound and sustainable hospitality business based on ethical governance that ensures
customer satisfaction with visiting a healthy coastal rural marine environment known for its
biodiversity and underwater WWII wreck diving and pearling industries.
To construct a resort using best-practice, ecologically sustainable practices that help protect the
biodiversity of the local environment, including historical underwater landmarks.
To build a rewarding vacation environment in Busuanga, Philippines that respects both Filipino and
non-Filipino cultural values.
To grow the business through the consolidation of local, traditional knowledge and life styles and
contemporary understanding of global markets.

Disclaim er
The information in this document is intended to express the opinions of the proponents only. Financially
interested individuals or investment groups should understand that the information contained relates to an
eco-resort venture at the developmental phase and involvement should be considered speculative. No
responsibility will be taken by the proponents of this document for the financial decisions or actions made by
others on the basis of the information contained within.

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Executive Summary
Overview
Roberts & Rose Mariculture Corp is a proprietor- the sea cucumber base camp. The resort and
owned Philippine company created on the basis of farm will share electrical, water, road and
the strategic and commercial symbiosis of co- communication infrastructure. The environmental
locating an eco-resort with an aquaculture and plan for the eco-resort will meet or exceed
aquatic research facility in the bio diverse coastal international ISO 14001 standards to ensure best
waters off Busuanga Island in the Calamian Group practice management.
northeast of Palawan, Philippines (Figure 1). Initially, the resort will consist of 20 tropical

Fig ure 1 . Desambuang Eco-Resort located of the on the eastern side of Busuanga.

The ECAN Board (Environmentally Critical Area cottages built to international standards. All
Network) of the municipality of Busuanga, cottages will be free standing and built on a
Palawan Province, has recently endorsed the hillside facing the sea with views of pristine inter-
construction of an eco-resort complex, a hatchery- tidal waters and coastal islands. Current plans
base camp and pier at Desambuang. Also, include construction of 12 additional cottages (4
included is the approval to utilize 240-hectares of cottages every two years, in years 3, 5 and 7).
sub-tidal sea leases adjacent to the property as Guests will have access to the companys boating,
personal access to the marine environment. This diving and accommodation facilities. Various
endorsement is based on the companys ethical holiday activities designed for children, students
mission and technical ability to operate the eco- and adults will be provided. They will also have
resort and sea farm without damaging the access to a vegetable/herb garden, sporting
environment while meeting or exceeding all local activities (e.g., horse riding, hiking, camping,
and international regulations and standards. fishing) and a hobby or student research
The company is planning to set-up an exclusive
eco-tourism resort on company land, adjacent to

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Commercially Confidential Information
facility with aquaria, microscopes, cameras, International; Angelo King International Center;
reference books and computers. Divers can Digital Telecommunication and FK Manpower &
partake in underwater sea life monitoring surveys Training Center. Further, she worked as a Manila
on the sea leases and marine parks with resort sales and front desk manager at the Batangas
staff. Country Club / Techno Park Hotel, a senior guest
A survey of resorts located near Desambuang service officer at the Sheraton Dubai Creek Hotel
indicates that over-booking is a chronic problem & Towers, a Manila sales manager at the Paseo
for diving resorts. This chronic over-booking Premier Hotel and a corporate sales manager for
demonstrates that there is space in the local Pontefino Residences.
resort market and we expect to enjoy high to full Thomas M Roberts, Operations
occupancy rates during both high and low season. Director, was the founder and
Presently there are 3 hectares of terrain available general manager of one of the
for a cottage style resort that includes hills and first dive resorts on Busuanga
valleys with seaside views and access to spring Island 26 years ago, as well as
water. After demonstrated success with the initial Pier House Resort, which is still
20 cottages, there will be plenty of space and in business today. TM Roberts
market demand to support an expansion of ___ has served as Director for
additional cottages. Portade Corp., and where he
trained management personnel in management
Management team and sales for Batangas Country Club, Techno Park
The eco-resort will have two directors in Hotel and Premier Hotel. During this period, he
combination with the sea cucumber farm: Tom also consulted with Portades parent company,
Roberts, an expatriate American living/working in Richaland Properties, to develop a retirement
the Philippines, and Robert Rose, an village targeting foreign customers outside of
Australian/American working in Australia and SE Manila. TM Roberts has relatives living in the
Asia. Roberts is pearl farmer with resort business Philippines and over 25 years of work experience.
experience. Rose is an aqua culturist with Educated in the USA, he has worked as an
experience in large-scale aquaculture projects and archeologist diver, business manager/proprietor
in building and establishing self-sufficient, remote of several companies involved in retail and
area living and working base camps for farming. primary industry, and managed his familys pearl
farming business operations in the region where
the companys aquaculture venture is to occur.
All company office bearers are Filipino with
experience in international law and business Robert A Rose, Technical
management and accountancy. The majority of Director, is a long-standing
the companys foreign and national shares are business colleague of TM
owned and controlled by the two directors. Roberts. He will be responsible
for oversight of development
Ivelle Legaspi, Resort Manager,
and on-going operations. RA
has worked over 11 years in the
Rose is a professional aqua
hotel and communication
culturist with a PhD in marine
industries, since 1998, she has
biology and has developed and
worked at a number of
consulted aquaculture and construction project in
prestigious national and
several areas of the world, including Australia,
international hotels in the
New Zealand, Tahiti, Malaysia, Indonesia,
Philippines and Dubai, Arab
Thailand, Tonga and the Philippines. He has over
Emirates. Ivelle has worked as a
20 years commercial experience in tropical, large-
front desk and senior front desk officer, senior
scale sea farming and marketing, and has worked
customer care specialist and administration
in the Philippines with TM Roberts in the pearling
manager at the following respective hotels and
industry.
communication companies: Days Inn Hotel

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Financial Projections

Construction of Buildings and Facilities


Cottages will be designed to have a small carbon foot print and positioned to ensure there is maximum
natural ventilation and views. Construction will exceed standards necessary to withstand inclement weather
conditions. Current layout plans position resort cottages on a hillside and along side the of the planned sea
cucumber farm. There is a natural vegetative zone between the eco-resort and sea cucumber farm facilities
ranging from 100 to 150 meters in width to ensure there is no noise pollution.
Each unit will have ceiling fans and air conditioners, television, DVD, mini bar, refrigerator and tea/coffee
service. All units will have a full bathroom with washbasin, toilet and shower. At the reception, restaurant/bar
and corporate function room there will be wireless Internet available.
All accommodation will include transfer services between Desambuang Eco-Resort and Busuanga Airport.
Power will be primarily from the municipality electrical grid system and we will have a back-up resort
generator to ensure consistent power service. Addtionally, we are conducting feasibility analysis to
determine the potential for onsite renewable energy generation, such as solar or wind.
Cottages will be approximately 30 square meters with a concrete foundation, concrete walls, wood trimming
and tiled roof and floor. French doors and louvered windows with screens will be used for front and back
entrances to create cross ventilation.
Each cottage will have a lanai with a small patio and landscaping to provide privacy, attract birds and
enhance the tropical appearance of each unit.
The estimated cost to build a 30-square-meter, high-strength unit is US$25,000 per unit. This price includes
furnishing.

Annual Revenue from Accommodation


The pricing structure developed during the first year of operation will generate revenues within the first year
of just over $1,220,000 (Budget; Table 1) while at the same time remaining competitive enough to attract
guests and promote the resort as a unique holiday destination providing value for money. Eventually, the
eco-resort will develop a reputation as a place of relaxation uniqueness and outdoor recreation at non-
exorbitant prices.
High season for tourism in Busuanga is from October to June. Low season is during July, August and
September. We estimate that the resort will function an average of 350 days per year, with a high season of
260 days and a low season of 90 days.
Annual accommodation revenues are estimated at $1,401,200. Income generated from accommodation
during high season is estimated at $1,092,000: 100% occupancy in 20 cottages at $210 per night. Income
generated during low season is estimated at $259,200: 80% occupancy in 20 cottages at $180 per night.
Additional revenues from meetings and conventions are estimated at $50,000 annually

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Annual Revenue From Non-Accommodation Sources
Sources of income beyond accommodation include diving, boating, fishing, food and drinks, banca tours, gift
shop sales, and other miscellaneous services. Non-accommodation income forecasts are derived from a
company survey on other resort rates in the Calamian Group during the high and low seasons.
Diving & Recreation: Diving activities range from: underwater photography, night diving, wreck diving,
deep sea / nitrox diving, globally recognized SCUBA diving courses (both SDI and PADI), and renting and
retailing of equipment. Dive rates are not dependent on season. Other miscellaneous recreation activities
include banca boat tours, kayaking, sailing and Jet Ski rentals.
Food & Beverage: Food during the high season is expected to provide revenues of $3,500 per day and
$2,000 per day during the low season.
Guest Services & Gift Shop: This includes a combination of retail from the gift shop and other
miscellaneous revenue sources. Income generated annually is estimated to be at $30,000.
Table 1. S um m ary o f Estim ated R evenue Years 1 & 2
Income Year 1 Year 2
Accommodation / Meetings & Conventions $1,401,200 $1,471,260
Diving & Recreation $1,017,000 $1,067,850
Food & Beverage $1,090,000 $1,144,500
Guest Services & Gift Shop $30,000 $31,500
Total $3,538,200 $3,715,110

Most resorts in Busuanga are focused specifically on underwater diving, generating their income mainly from
wreck diving. Desambuang Eco-Resort will offer diving, but in addition it will couple the dives with simple and
enjoyable photographic and visual environmental monitoring programs, which will be satisfying, educational
and interesting. The resort is approximately five minutes from one of the best shipwrecks in Busuanga and
15 minutes by boat from Sangat Bay to another large group of wrecks resulting from the battle of Sangat in
September 1944 (see Figure 1).

Guests at the resort that enjoy fishing will also be accommodated, as well as other land based activities,
such as, hiking and navigational training, painting, horse back riding, bike tours and endurance courses.

Capital Expenses
To establish the resorts infrastructure a number of construction activities are required and can be divided
into three sections: site development; infrastructure up to complete refurbishment; and plant and equipment.
The cost of capital goods are listed in Table 1 and summarized below.
Infrastructure costs will include cottages, restaurant, staff quarters, reception, laundry, workshop, generator
shed, storage sheds, pier, retail shops, dive/boat shed, spa/pool and landscaping. The infrastructure costs
also include most of the contents of the buildings. Prices shown are derived from similar remote area
projects in SE Asia and from quotes.
Plant and equipment relate to: boats; diesel power generators; ski-jets; vehicles; dive gear; tools; office
equipment; and cabinets/desks.

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Table 2. C aptial C osts


Infrastructure
Engineering survey (job cost and travel) $24,000
Power lines/transformer/underground cables $100,000
Road/water (supply, storage and reticulation) $90,000
Power generation shed $25,000
Workshop $35,000
Restaurant/Bar $200,000
Staff Quarters/Ablution $90,000
Reception/Corporate Function Room $193,000
Diving/Boat storage shed $30,000
Concrete pier $87,000
Cottages (20 units) $500,000
Manager/ bungalows (2 units) $40,000
Retail shop and Pool bar $25,000
Landscape/lighting $50,000
Spa/pool (connected) $80,000
Infrastructure (furnished) Total $1,569,000
Plant & Equipment
Generator $100,000
Vehicles $80,000
Tools $10,000
Dive boats (2), Yamaha Wave Runners (3) $200,000
Banca (traditional native outrigger motor boat) $15,000
Dive gear and equipment $170,000
Outdoor furniture/Office cabinets/desks $13,000
Indoor Furniture & Fixtures $50,000
Lounge Bar Furniture & Fixtures $50,000
Start-up Supplies $25,000
Office Equipment (computers, software, phones) $12,000
Plant & Equipment Total $725,000
Other Capital Costs
Project and Site Manager Services $100,000
Construction Labor $75,000
Start-up Marketing Costs $25,000
Communications & Advertising $28,000
Work Visas & Travel Expense $39,000
Uniforms, Linens, Sanitation $16,000
Other Capital Costs Total $325,450
Total Capital Costs $2,619,450

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Resort Operational Costs

The following cost calculations relate to resort staff and other overhead expenses.

Table 3. O perating Expenses


Administration $65,000
Housekeeping $39,100
Food Service $50,600
Buildings & Grounds $77,900
Recreational $79,500
Employee Benefits $62,420
Employee Training $5,000
Employee Room & Board $20,000
Other Employee Costs $1,500
Temporary Labor $5,000
Meeting & Convention Supplies $5,000
Transportation & Freight Costs $10,000
General Consumables $25,000
Equipment Repair and Maintenance $20,000
Building Repair & Maintenance $20,000
Grounds Keeping Expense $15,000
Housekeeping Expense $15,000
Small Equipment & Supplies $5,000
Cleaning Supplies $10,000
Utilities & Fuel $71,000
Taxes & Licenses $20,000
Insurance $50,000
Office Expenses $10,000
Telecommunications $18,000
Marketing Expenses $20,000
Information Technology $10,000
Professional Services $30,000
Contractors $100,000
Travel & Entertainment $25,000
Miscellaneous Expences/Contingency $47,900
Total $932,920

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Table 3. B udget fo r D esam buang Eco -R esort


Income / Revenues Year 1 Year 2 Year 3
Investment Funds $3,000,000 0 0
Operating Revenues 0 $3,538,200 $3,715,110
Total Receipts $3,000,000 $3,538,200 $4,469,040
Capital Costs
Site Development $214,000
Infrastructure $1,355,000 $15,000 $150,000
Plant & Equipment $725,000 $8,000 $58.000
Other Capital Costs $325,450 $2,000 $5,000
Total Capital Costs $2,619,450 $25,000 $213,000
Operational Expenses
Wages and Employment $406,020 $414,140
Overhead $526,900 $537,438
Total Operational Expenses 0 $932,920 $951,578
Total Cash Outflows $2,619,450 $957,920, $1,164,578
Opening Bank Balance 0 $380,550 $2,960,830
Net Cash: Inflows less Outflows $460,000 $2,580,280 $3,304462
Closing Bank Balance $380,550 $2,960,830 $6,265,292

Profit
This business plan shows that the project is profitable with sufficient revenue to pay back the initial capital
investment of $3,000,000 by the end of the fourth year of operation. The proponents of this eco-resort are
currently developing a construction work schedule.

Projects Sustainability
Having exclusive access to large sea lease areas that are protected for aquaculture will ensure that the
project has a renewable, pristine recreational environment representative of the famous natural marine
biodiversity known to occur in the Palawan Province. The projects proposed best practice custodial land
management style will provide the resort every opportunity to be an economically, environmentally and
culturally sustainable business. Tourism within the Calamian Group of islands in northeast Palawan
Provence is anticipated to continue to grow, attracting both foreign and local tourists.

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Contact information

Operations Director Technical Director


Thomas M Roberts Robert A Rose
Concepcion 8 Kelat Court, Bayview 0820
Busuanga Island Northern Territory, Australia
Palawan, Philippines Mob: 6140 208 2494
Mob: 0920 981 5500 Email: bob@pearloyster.com.au
Email: tm.roberts11@gmail.com

Resort Manager Email: ivelle.legaspi@gmail.com


Ivelle B Legaspi Registered Office
Concepcion Roberts & Rose Mariculture Corp
Busuanga Island 12th Floor Net One Center, 26th St. corner 3rd Ave.
Palawan, Philippines Crescent Park West, Bonifacio Global City
Mob: 0917 418 4619 Taguig City, Metro Manila, Philippines 1634

A complete Business and Operations Plan, with detailed 6-year financial projections are available to
prospective investors by contacting the directors above.

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