PART 2 ART, SCIENCE, & SPIRIT
MESEMONDO A REGENERATIVE RETREAT CENTER FOR THE 21ST CENTURY
BUSINESS PROPOSAL **CONFIDENTIAL** DRAFT | VERSION 1.6 JULY 2022
Celebrating spirit, mind, body, and earth in the mountains of Costa Rica
TABLE OF CONTENTS OVERVIEW……………………………………………….….3 Vision, Mission, Foundational Principles; Business Structure, Site Design, Planning Approach, Design Principles; Products & Services, Educational Offerings, Sample Activity Pathways; Industry Overview & Trends; Business Canvas
THE COMPANY………………………………………..…..21 Ownership; Key Advisors, Insight Consultants, Organizational Structure; Legal Structure; Management Structure; Goals & Objectives (Note: This Section Needs Work)
PRODUCTS & SERVICES…………………………………32 Overview; Site Structures, Service Locations; Wellness Services, Activity Pathways, Revenue Models, Creative Marketing, in-Room Wellness Amenities, Playful Textiles
MARKET ANALYSIS……………………………………….54 Costa Rica; EcoTourism, the Wellness Economy; Offerings & Trend Alignment; Customers & Motivations – the Opportunity; Market Spotlight: Arenal; Ecotourism Motivations, Wellness Motivations and Growth Opportunities; User Personas
COMPETITION AND COOPERATION…………………90 SWOT Analysis; Competition and Cooperation Sections To Be Added From Social Entrepreneurship in Hospitality (Section Under Construction)
FINANCIAL MODELS……………………………….…….93 Construction & Development; Operating Expenses; Financial Models; Revenue Models; Projected Profits; Investor Return Models; BEP
APPENDIX…………………………………………………112 Sustainability Policy; Curated Inspiration; Textile Design Boards; Resources; Kimberly Byrd’s CV; Financial Forecasts Models A-C
MARKET ANALYSIS COSTA RICA COUNTRY ANALYSIS ECOTOURISM THE WELLNESS ECONOMY KEY DRIVERS GROWTH POTENTIAL PROGRAMMING-TREND ALIGNMENT Page 3
COSTA RICA IS A STRONG INVESTMENT WHY COSTA RICA? Sometimes referred to as the "Little Switzerland" of Central America, Costa Rica is home to a stable democracy, unparalleled natural diversity, and some of the longestlived people on the planet. The country invented "eco-tourism" and plans to invest in the coming decade to ensure it's growth. The scientific, psychological, and physiological benefits of time spent in nature are well-proven, and today many travelers seek excursions like "forest bathing" to counteract the stresses of modern life. There are numerous direct flights from the United states (a 5-hour direct flight from Minneapolis typically costs around $500), making it the ideal destination for tourists seeking either adventure or serenity.
COSTA RICA IS A STABLE DEMOCRACY Costa Rica is one of the oldest democracies in the Americas. It abolished its military forces in 1949, diverting this funding to health and education of its peoples. It has prizes public education, including the university system as well as technical and vocational training. Its population of 5 million people enjoys a literacy rate of 96%. Costa Rica is the home to many international organizations such as the Inter-American Court of Human Rights, the University for Peace of the United Nations and the Earth Council. (Information from the embassy of Costa Rica in Washington, DC)
RANKED AS THE #2 PLACE TO RETIRE IN THE WORLD Costa Rica has been named as the world #2 place to retire in according to International Living's 2022 Global Retirement Index. The annual index features a list of global retirement hotspots, compiled using personal experiences of expats in each location, combined with factors good weather, professional healthcare provision, simple access and affordability.
Plus insights from Costa Rica’s Brand Management President, Podcast #100, July 18 2022
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THE HOSPITALITY & TOURISM INDUSTRY From Social Entrepreneurship in the Hospitality Industry, Legrand et al, 2021 The exponential growth and economic impact of hospitality and tourism is well documented with an increase from 25 million international tourists in 1950 to over 1.42 billion by 2018 (UNWTO, 2018; World Bank, 2020). All three major hospitality chains have names for their eco-tourism / responsible travel schemes: “Nurture our planet” (Marriott), “Travel with purpose” (Hilton) and “Acting every day for Positive Hospitality” (Accor). For example, the five key pillars that guide Accor’s overall approach to well-being are Active Nutrition, Holistic Design, Bodies in Movement, Leveraging Spa, and Embracing Mindfulness (Accor White Paper 2019). There has also been considerable disruption in the industry through the ‘sharing economy’, with room sharing platforms of the Airbnb type rising in competitiveness in the traditional hotel sector and at the same time causing significant problems to many cities.
WE WILL EXPLORE TWO ASPECTS OF THE HOSPITALITY INDUSTRY IN OUR MARKET ANALYSIS ECOTOURISM
WELLNESS TOURISM
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ECOTOURISM IN COSTA RICA
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THE WELLNESS ECONOMY
Source: The Global Wellness Economy: Looking beyond Covid December 2021 Page 8
THE WELLNESS ECONOMY
Source: The Global Wellness Economy: Looking beyond Covid December 2021
THE WELLNESS ECONOMY IN COSTA RICA
Source: Global Wellness Initiative Country Rankings 2022 Page 10
WELLNESS TOURISM In the text below, the Global Wellness Initiative describes how it defines and measures two types of wellness tourism: • Primary wellness travel refers to trips in which the trip itself, the destination, and the activities are primarily motivated by wellness. • Secondary wellness travel refers to trips where wellness is not the primary motivation for the trip, but where wellness affects some choices and activities because the traveler would like to maintain good health and/or their wellness lifestyle during the trip.
They report that secondary wellness tourism accounted for 92% of wellness tourism trips and 90% of wellness tourism expenditures in 2020.
WELLNESS TRAVELERS ARE WILLING TO PAY A PREMIUM Wellness travelers spend more per trip than the average tourist; this holds true for both domestic and international travelers, even during the pandemic. In 2020, international wellness tourists on average spent $1,601 per trip, 35% more than the typical international tourist. The premium for domestic wellness tourists is even higher at $619 per trip and 177% more than the typical domestic tourist. This is because wellness travelers are typically more affluent, educated, and well-traveled, and they are willing to spend more on travel experiences, services, and amenities that support their health and well-being.
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KEY DRIVERS OF FUTURE GROWTH FOR WELLNESS REAL ESTATE Trends identified by the Global Wellness Initiative, 2021 that are pertinent to the Mesemondo Project: 1. Rapidly rising interest in wellness certifications for residential properties (in addition to office/ commercial properties). 3. Continued growth of master-planned communities, mixed-use developments, and urban districts with expansive wellness amenities and/or with health and well-being as a key selling point. 4. Wellness residential concepts will grow rapidly in developments targeting seniors and young adults, including senior living, multigenerational living, and coliving. 5. “Retreat-style” wellness living concepts (second homes, vacation homes) will expand to most major destination spa and destination resort brands. 6. A heightened appreciation for and emphasis on natural areas, parks, outdoor recreation amenities, and public spaces will continue in the post-COVID era – and especially a heightened focus on more equitable distribution of and access to these spaces. 9. Growing interest in healthy buildings and health-enhancing built environments among real estate investors, driven by tenant demand as well as a growing emphasis on human health as part of ESG (environmental, social, and corporate governance) initiatives. 10. Increasing overlap between planetary health (sustainability) and human health (wellness) across all types of building projects.
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WELLNESS FACILITATES & TREATMENTS WITH GROWTH POTENTIAL As the HTWW 2030 trend report on Wellness, Spas, Health Travel illustrates below, destination spas in central America, especially resort spas, eco spas, and wellness resorts show the greatest potential. Treatments that focus on spiritual dimensions and natural resources will be most in demand. Mesemondo’s facilities and services position it favorably within these trends.
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WELLNESS TRAVELERS ARE DISCRIMINATING As the text below from the Global Wellness Initiative 2021 Report explains, wellness tourists are asking crucial questions about their impact. Kimberly’s training and expertise position the project to be a leader in this area, and to provide serious answers to these questions.
THEY ARE ASKING IMPORTANT QUESTIONS Across all wellness arenas, uncomfortable questions are now being asked by consumers and the media: Is wellness a privilege or a basic right? Am I causing harm to the planet or amplifying injustice with my purchases? Are people and places being exploited by the wellness industry? Are non-white consumers, practitioners, and entrepreneurs being discriminated against or excluded? Are we appropriating the traditions of peoples who have been marginalized and oppressed? This global values reset is spreading into many spheres – environmental and social justice, mindful leadership, and even questioning the capitalist system itself – with broad ramifications in all sectors of the wellness economy. In the future, we expect to see more wellness businesses embrace “conscious capitalism,” incorporating United Nations Sustainable Development Goals (UN SDGs) as part of their corporate social responsibilities (CSRs), reporting on their environmental, social and governance (ESG) metrics, or adopting a benefit corporation status.
TRANSPARENCY AND AUTHENTICITY ARE CRUCIAL Walk the talk on ESG and UNSDG.One reason that we yearn to travel is to experience wonder and awe (whether natural or human-made), and to satisfy our need for connection, inspiration, and transcendence. There are indications that the pandemic experience has accelerated demand for slow travel, transformative travel, regenerative travel, and the like (i.e., goal-based and values-driven travel that involves personal growth, transcendence, and an awareness of the social and environmental impacts on the destination). Wellness tourism – especially primary wellness travel – is well-positioned within this trend; however, this may also mean that people are no longer satisfied with traditional spa retreats that offer great yoga classes, green juices, and a good massage. Travelers may also start noticing and questioning their own environmental and social footprints, as well as whether places and people are being exploited, and they will increasingly make choices based on these concerns.
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HOW OUR PROGRAMS, SERVICES, AND EDUCATIONAL OFFERINGS ALIGN WITH INDUSTRY TRENDS IN WELLNESS Trend
Mesemondo Offering
Regenerative Hospitality & Travel -restoring & repairing surrounding communities & ecosystems Mututal respect & connection Regenerative Art Expressing ideas and emotions that enable transformations
Artist in Residence; Artist Workshops; Conscious Cooking; DIY Art Intervention; Improv Workshops; Musician in Residence; Photography Classes; Postcard Series; Public & Community Art; Storytelling for Connections; The Poetry of Connection; Workshops on Cycles of Creativity and Renewal; Writer in Residence; Writer's Shack; Art Gallery; Sculpture Garden; Biomimicry Treasure Hunt; Our Relatives with Roots; Our Relatives with Wings; Architectural Demonstration Buildings; Biomimicry: Life's Design Principles; Biophilic Architecture & Design; How Can I Make a Difference? (Social Change Wheel); Regenerative Design; Resilience Mindsets; Solutions Showcase; Incremental vs transformational change; Telling Your Story of Change; The Three Stories of Our Time (Macy, Relational Center); The Work That Reconnects (Macy & Engaged Buddhism); Thresholds of Change; Walking Meditation; What's it like to be a bat? Seeing through animal eyes
Regenerative Leadership Inspire and nurture
Storytelling for Connections; Improv Workshops ; Workshops on Cycles of Creativity and Renewal; Climate Impacts Near & Far; Diversity & Redundancy (& the Pathology of Efficiency); Managing Systems for Resilience; Think Competition Runs the World? Think Again!; Tipping Points: View from Ecology; Alternatives to GDP; Beyond Mission Zero: Creating Positive Change; Biomimicry: Life's Design Principles; Building a Vision: Backcasting for the Future; Design Thinking; Do we need transformative change?; Doughnuts & Doughnut Economics; Ethics & Enchiladas; Exploring True Costs & Externalities; Global SDGs & Synergetic Solutions; Living Systems Design; Measuring What Matters: Muti-capital Assessments; Multi-Solving & Co-Benefits; Planning for Resilient Futures; Psychology of Sustainable Behavior; Regenerative Design; Resilience Mindsets; Solutions Showcase; Sustainability for the 21st Century; Synergy & The Sustainable Development Goals (SDGs); System Archetypes: When problems keep coming back; The Sustainability Spectrum; What's a B-Corp?; Effective Communication; Life Lessons from Biomimicry; Planning for Resilient Futures; Telling Your Story of Change; The Three Stories of Our Time (Macy, Relational Center); The Work That Reconnects (Macy & Engaged Buddhism); Thresholds of Change Page 15
Spirituality & Business Focus on social wellbeing, happiness index, care and compassion, sense of purpose
Adaptive Cycle; Cycles of Creativity & Renewal; EcoCentric Worldviews: Deep Ecology, Ecofeminism; Effective Communication; Incremental vs transformational change; Life Lessons from Biomimicry; Loving Kindness Meditation; Meditation & Neuroscience; Planning for Resilient Futures; Science & NonDuality; Telling Your Story of Change; The Three Stories of Our Time (Macy, Relational Center); The Work That Reconnects (Macy & Engaged Buddhism); Thresholds of Change; Walking Meditation
Understanding the term “Regenerative Economy” Alternatives to GDP for measuring sustainability, happiness, and wellbeing
Storytelling for Connections; Climate Impacts Near & Far; Diversity & Redundancy (& the Pathology of Efficiency); Managing Systems for Resilience; Think Competition Runs the World? Think Again!; Tipping Points: View from Ecology; Alternatives to GDP; Beyond Mission Zero: Creating Positive Change; Biomimicry: Life's Design Principles; Building a Vision: Backcasting for the Future; Design Thinking; Do we need transformative change?; Doughnuts & Doughnut Economics; Ethics & Enchiladas; Exploring True Costs & Externalities; Global SDGs & Synergetic Solutions; Living Systems Design; Measuring What Matters: Muti-capital Assessments; Multi-Solving & Co-Benefits; Planning for Resilient Futures; Psychology of Sustainable Behavior; Regenerative Design; Resilience Mindsets; Solutions Showcase; Sustainability for the 21st Century; Synergy & The Sustainable Development Goals (SDGs); System Archetypes: When problems keep coming back; The Sustainability Spectrum; What's a B-Corp?; Effective Communication; Life Lessons from Biomimicry; Planning for Resilient Futures; Planetary Boundaries; Thresholds of Change
Increasing number of B-Corporations in the Wellness Industry Benefit corporations enhance credibility and value Raising Interest in and Practice of Spirituality Advances in neuroscience, psychology, and sense of purpose
Adaptive Cycle; Cycles of Creativity & Renewal; EcoCentric Worldviews: Deep Ecology, Ecofeminism; Equine Experience; Healer in Residence; Incremental vs transformational change; Life Lessons from Biomimicry; Loving Kindness Meditation; Meditation & Neuroscience; Planning for Resilient Futures; Telling Your Story of Change; The Three Stories of Our Time (Macy, Relational Center); The Work That Reconnects (Macy & Engaged Buddhism); Thresholds of Change; Walking Meditation; What's it like to be a bat? Seeing through animal eyes Page 16
Design Trend: Communal Experiences with friends, the opportunity to meet new people, and educational experiences Design Trend: Outdoor Blending nature and therapy- outdoor hydrotherapy experiences, vitality pools, reflexology pebble paths, forest bathing, meditation decks, botanical elements
Wellness Architecture: mental wellness High air & water quality, contact with nature, connectedness with others, medicinal and food gardens
Afternoon Tea; Art Gallery; Bright Morning Qi Gong; Cooking & Nutrition Classes; Evening Yoga; Fitness Class; Floating Classroom; Forest Bathing; Hanging Bridges; Hootenanny; Mindfulness Workshop; Night Hikes; Outdoor Movies; Picnics; Pool; Retreat Facilities; Rise and shine yoga; Sculpture Garden; Sunset Drinks on the Patio; TED Talks - Watch & Discuss; Weekend Dance Parties
Architectural Demonstration Buildings; Beyond Mission Zero: Creating Positive Change; Biomimicry: Life's Design Principles; Biophilic Architecture & Design; Design Thinking; Discover Permaculture; Living Systems Design ; Living Community Challenge/Living Building Challenge; Measuring What Matters: Muti-capital Assessments; Meditation; Mindfulness Workshop; Sculpture Garden; Visit the Farm; Visit the Organic Garden; Planning for Resilient Futures; Public & Community Art; Regenerative Design; Resilience Mindsets; Solutions Showcase; The Sustainability Spectrum
Wellness architecture: Soul architecture raw materials that age gracefully (such as wood, stone, sand, bamboo in their most natural state) Spiritual and Numinous Moments in Architecture (2021 trend) Creating spaces that ground, connect and uplift; offer mindfulness, introspection and connections
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Trend
Mesemondo Offering
Transformational Wellness Ignites some kind of change in the consumer; is different for each person, is accomplished in increments, not a singular treatment
Adaptive Cycle ; Building a Vision: Backcasting for the Future; Design Thinking; Do we need transformative change?; Doughnuts & Doughnut Economics; Ethics & Enchiladas; Exploring True Costs & Externalities; How Can I Make a Difference? (Social Change Wheel); Living Buildings/ Living Communities; Living Systems Design; Measuring What Matters: Muti-capital Assessments; Multi-Solving & CoBenefits; Global SDGs & Synergetic Solutions; Planning for Resilient Futures; Regenerative Design; Resilience Mindsets; System Archetypes: When problems keep coming back; Science & NonDuality; Storytelling for Connections; The Poetry of Connection; Workshops on Cycles of Creativity and Renewal; Think Competition Runs the World? Think Again!; Tipping Points: View from Ecology; Cycles of Creativity & Renewal; Eco-Centric Worldviews: Deep Ecology, Ecofeminism; Effective Communication; Equine Experience; Healer in Residence; incremental vs transformational change; Life Lessons from Biomimicry; Loving Kindness Meditation; Meditation & Neuroscience; Planning for Resilient Futures; Telling Your Story of Change; The Three Stories of Our Time (Macy, Relational Center); The Work That Reconnects (Macy & Engaged Buddhism); Thresholds of Change; Walking Meditation; What's it like to be a bat? Seeing through animal eyes
Mental Wellness: Eco-Anxiety Climate change, wildfires, floods contributing to collective and individual “Eco-anxiety.” Mindfulness and meditation practices to seek peace within themselves: Mindfulness creates the space in your mind for happiness and joy now. Meditation provides an opportunity for happiness and joy outside of circumstances and a calm base from which to engage in action to save our planet.
Beyond Mission Zero: Creating Positive Change; Biomimicry: Life's Design Principles; ; Bright Morning Qi Gong; Biodiversity 101: That which weaves us together; Building a Vision: Backcasting for the Future; Design Thinking; Do we need transformative change?; Global SDGs & Synergetic Solutions; Grandma University; How Can I Make a Difference? (Social Change Wheel); Living Buildings/ Living Communities; Living Systems Design; Measuring What Matters: Muti-capital Assessments; Multi-Solving & CoBenefits; Planning for Resilient Futures; Resilience Mindsets; Solutions Showcase; Cooking & Nutrition Classes; DIY Art Intervention; Equine Experience; Evening Yoga; Fitness Class; Floating Classroom; Forest Bathing; For the love of all things creepy and crawly; Healthy Gut, Healthy You (Your Inner Rainforest); Integrative Nutrition Consultation; Managing Systems for Resilience; Our Relatives with Roots; Our Relatives with Wings; System Archetypes: When problems keep coming back; The Sustainability Spectrum; Science & NonDuality; Think Competition Runs the World? Think Again!; Tipping Points: View from Ecology; Adaptive Cycle; Cycles of Creativity & Renewal; Eco-Centric Worldviews: Deep Ecology, Ecofeminism; Effective Communication; Equine Experience; Healer in Residence; Incremental vs transformational change; Life Lessons from Page 18 Biomimicry; Loving Kindness Meditation; Meditation &
Note: I can continue with this analysis if you think it is helpful
Trend
Mesemondo Offering
Cultural inclusivity and connectedness (2021 trend) Need for society to take steps to embrace diversity and ensure safety for all sectors of society. Brain science (2019 trend) Brain plasticity, emotional well-bing, microbe biome and the brain Self-grown Food Systems Making things like bread, pasta, or pickles in jars Additional incentives are reducing food waste Change for Good A shift from performative “social washing” to taking action to help achieve the 17 United Nations Sustainable Development Goals. Stories are as Important as Numbers Increased use of qualitative data in the form of personal stories, shared experiences to substantiate the business and societal value of social impact initiatives. Putting Investments to Work in a Way That Truly Matters (2021 trend) Impact investing is the one sector of venture capital that has been growing exponentially. Climate Change is Front and Center (2021 trend) Environmental catastrophes have created immediate action with corporate social responsibility managers to address climate change. Purpose is profit (2020 trend) Strong brands that choose the path of collective good find they outperform in shareholder value.
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Trend
Mesemondo Offering
Teachers Leaving the Work Force More than 75% of teachers have reported frequent job-related stress, compared to 40% of other working adults and 27% of teachers reported symptoms of depression, compared to 10% of other adults. Generational health (2021 & 2019 trend) Grandparents and their grandchildren engaging in wellness activities together. 2019 - family wellness retreats or wellness vacations Destination-Led Wellness Development We are seeing the continued growth of dedicated destination-led wellness experiences for both travelers and the local community to match ongoing strong consumer demand. Conscious Travel Regenerative travel and doing good and influencing positive change through wellness tourism is being embraced broadly by all generational travelers including millennials, Gen Z and baby boomers. Green Prescription Holidays Doctors have a long tradition of prescribing thermal holiday experiences across Europe with this now expanding more broadly to green nature-based experiences. This trend is also gaining strong momentum and support in the US and the UK. Digital Nomad Boom The work-from-anywhere concept continues to pick up momentum, supported by countries like Bali, Mexico and Costa Rica who are building their reputations, marketing, and infrastructure around it. Insurance & Businesses Support Wellness (2021 trend) Insurance companies and employers are prioritizing allocations to wellness programs. This means more people have dedicated funds and the opportunity to attend wellness-related experiences and programs. New Wellness Lifestyle Programs (2021 trend) Off-grid and permaculture programs for dedicated travelers who want to learn more about how to build this into their lifestyle. Embracing Indigenous Wellness Traditions (2021 trend) The growth of culture-driven wellness experiences emphasizing Eastern philosophies and other ancient traditions, including Ayurveda, TCM, Daoist traditions, etc. Outdoor Physical Fitness Boom (2021 trend)
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Hot springs as both Health and Lifestyle Wellness Destinations (CUT?) This has enabled health focused facilities to provide greater wellbeing offerings and for recreational wellbeing focused facilities to think more about their health and healing potential. Hot Springs Plus: Connecting Visitors to Local Culture and Nature (CUT?) Helps Deliver Higher Yields and Longer Stays; combine with hiking, horseback riding and biking, visiting local produce growers and wineries; surge in hot and cold bathing experiences and particularly the combination of saunas and ice-cold plunge pools. Multigenerational Features for Hot Springs provide environments, activities and accessibility for people at all stages taking heed of the visitor’s age and ability (mobility). facilities are providing separate spaces for high and low energy activities, Hot springs & Retirement communities In recent years, some hot spring enterprises in China have cooperated with real estate developers and commercial insurance companies to develop retirement villages centered around hot springs.
#s 2-8 https://globalwellnessinstitute.org/initiatives/beyond-gdp-world-happiness-wellbeinginitiative/beyondgdp-trends/ (2022) #9- https://globalwellnessinstitute.org/consulting-best-practices-initiative-trends/ 2022 Arch: https://globalwellnessinstitute.org/initiatives/wellness-architecture-design-initiative/wellnessarchitecture-trends/ Transformational Wellness https://globalwellnessinstitute.org/consulting-best-practices-initiative-trends/ Hot springs: https://globalwellnessinstitute.org/initiatives/hot-springs-initiative/global-hot-springs-trends/ Anxiety, inclusivity, brain sci https://globalwellnessinstitute.org/initiatives/mental-wellness-initiative/mentalwellness-initiative-trends/ Food Social impact: Change for good through purpose is profit https://globalwellnessinstitute.org/initiatives/socialimpact/social-impact-trends/ Children https://globalwellnessinstitute.org/initiatives/wellness-for-children-initiative/wellness-for-children-trends/ Tourism https://globalwellnessinstitute.org/initiatives/wellness-tourism/wellness-tourism-initiative-trends/ Page 21
CUSTOMERS & MOTIVATIONS THE OPPORTUNITY SPOTLIGHT ON ARENAL MARKET SEGMENT MOTIVATIONS USER PERSONAS
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THE OPPORTUNITY People today need connection. We are deeply seeking the exploration and discovery of our primary interrelationships: alignment with our truest selves, our human communities, and with the earth. At their best, ecotourism and wellness retreats reveal the vibrance of the natural world and foster our kinship with fellow living beings, embrace the goodness inherent in the human heart, and nourish our creative potential.
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THE OPPORTUNITY
MARKET SPOTLIGHT: ARENAL The Arenal Volcano is one of Costa Rica's most iconic treasures, hosting over 1.5 million visitors each year. This massive volcano towers over a man-made reservoir, Lake Arenal, which offers a multitude of water and adventure activities, including windsurfing, hiking, horseback riding, wildlife safaris, and photography. The surrounding hotels, spas, hot springs, and tourist towns make Lake Arenal and the Arenal Volcano one of the most popular tourist destinations in Costa Rica.
THE LARGEST TOWN ON LAKE ARENAL IS LA FORTUNA, THE "ADVENTURE CAPITAL OF CENTRAL AMERICA.”
What are the characteristics of people visiting Costa Rica? The analysis below highlights demographics from a recent study of ecotourism in Arenal. The data from the graphics came from CarvacheFranco, et al. The Role of Motivations in the Segmentation of Ecotourism Destinations: A Study from Costa Rica. Sustainability 2021, 13, 9818.
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MARKET SPOTLIGHT: ARENAL
Data from Carvache-Franco, et al. The Role of Motivations in the Segmentation of Ecotourism Destinations: A Study from Costa Rica. Sustainability 2021, 13, 9818.
MARKET SPOTLIGHT: ARENAL
Data from Carvache-Franco, et al. The Role of Motivations in the Segmentation of Ecotourism Destinations: A Study from Costa Rica. Sustainability 2021, 13, 9818.
ECOTOURISM MOTIVATIONS THERE ARE FIVE OR SIX PRIMARY MOTIVATIONS THAT INSPIRE ECOTOURISM.
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MOTIVATIONS INFORM MESEMONDO OFFERINGS Insights about ecotourism motivations help inform the types of activities most likely to appeal to these market segments. This information was used to develop the onsite offerings and programming elements at the Mesemondo Retreat Center.
Data in columns 1-3 are from Carvache-Franco, et al. The Role of Motivations in the Segmentation of Ecotourism Destinations: A Study from Costa Rica. Sustainability 2021, 13, 9818. Page 29
WELLNESS MOTIVATIONS
Graphics from the Accor White Paper on the Business of Wellness and Hospitality
WELLNESS MOTIVATIONS USA/CANADA Graphics from HTWW 2030 Trend Report for Wellness, Spas, and Health Travel
KEY MARKET SEGMENTS IN WELLNESS Graphics from HTWW 2030 Trend Report for Wellness, Spas, and Health Travel
WELLNESS GROWTH OPPORTUNITIES Graphics from HTWW 2030 Trend Report for Wellness, Spas, and Health Travel
WELLNESS GROWTH POST-COVID19 Graphics from HTWW 2030 Trend Report for Wellness, Spas, and Health Travel
SERVICE POPULARITY IN WELLNESS Graphics from HTWW 2030 Trend Report for Wellness, Spas, and Health Travel
MESEMONDO USER PERSONAS In User Experience Design (UX), professionals create “User Personas," fictional or archetypal clients that represent the needs, goals, and characteristics of an ideal customer. This helps product designers gain insight and empathy into potential market segments. An understanding of customers' individual learning journeys and their behavior patterns helps product designers create something that is useful, desirable, and valuable to the target market. In this case, the "Market Motivations" data research from from Carvache-Franco, et al. The Role of Motivations in the Segmentation of Ecotourism Destinations: A Study from Costa Rica. Sustainability 2021, provided the justification and analysis behind each persona's development.
USER PERSONAS 2-3
USER PERSONAS 4-5
COMPETITION & COOPERATION MARKET COMPARISONS NETWORKS TRADE ASSOCIATIONS BUSINESS ACCELERATORS
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SWOT ANALYSIS STRENGTHS
WEAKNESSES
• CEO has extensive experience in
• Depending on location selection,
writing, designing, and leading
transportation travel time could be a
classes workshops and educational
barrier
programs for a variety of audiences (intellectual property) • CEO has special expertise in evaluating sustainability trends • Unique combination of art, wellness, ecotourism, and science
• Visitors to Costa Rica often complain of poor road conditions • High initial costs • Creativity is needed in financing because all foreign real estate transactions are done in cash
• Personalized attention by staff
(history shows the possibility of
• Biophilic building design/
obtaining a mortgage with a local
architecture a point of interest • Revenue diversification beyond
Costa Rican Bank is near zero) • CEO is inexperienced in hotel
lodging includes opportunities for
operations (she may attend Cornell
locals and local tourists
University’s hotel management
• Location attractive to travelers from US, Canada, Europe • Positive, inspirational culture makes it a fun place to work and visit • Guests can create personalized pathways specific to their interests • Art gallery and sculpture garden offer something completely new • Large repertoire of sucessful, healthy, vibrant recipes • Holistic approach draws people in
certificate course to mitigate this concern) • Need to establish reputation if starting from scratch; need to increase customer reviews if purchasing existing boutique hotel/ resort • Rainy season may limit visitors in September & October (rebrand as “Whale season” if located near the Southern coast)
• Bespoke textiles create novelty, something fresh • Visitors promote self-care and healing, increasing their aptitude for engaging community and solidarity back at home • Worker profit-sharing helps retain excellent employees • Self-identified and self-directed projects by employees contribute to needs of the local community Page 40
SWOT ANALYSIS OPPORTUNITIES
THREATS
• Costa Rican government offers
• Potential changes in regulations
sustained, focused to increase tourism • Strong eco-tourism and sustainability branding in CR
(water, other?) • Increased price inputs could cause upward pricing
• Affiliate relations with related vendors
• Increased climate threats: drought,
• Development of proprietary products
floods, landslides, invasive species,
(Spa? Apothecary?) • Bespoke textiles could be sold online • Online course offerings, e-books • Ability to grow produce on site can limit food expenses • Networking potential with social entrepreneurs, regenerative travel, Bcorporations • High growth trends for Wellness Economy and Wellness Tourism
vector-borne diseases, heat waves, refugees, red tide along the coast • Political instability in Nicaragua could cause stress • Pandemic health restrictions may limit international tourism • Rising fuel costs could reduce international air travel • Global recession may decrease international travel
• Wellness tourists are willing to pay 53% more for their experiences • Costa Rica is showing strong tourism recovery after COVID • The Costa Rican real estate market has shown stable upward trends (no drastic highs/lows/bubbles) • Potential affiliation with multiple colleges to offer for-credit student programs • Explosive interest in regenerative approaches • The new digital nomad visa in Costa Rica may escalate the need for for long term rentals • Special marketing and discounts for educators, health care workers, those in the environmental field • Community programs like TED watch and discuss contribute to the social capital of the area • Only 15% of properties have four plus bedrooms, strong market here Page 41
FINANCIAL MODELS OPERATING EXPENSES PURCHASE OPTIONS BEP
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CONSTRUCTION & DEVELOPMENT EXPENSES Estimated Expenditures for Land Acquisition, Development, & Construction
LAND ONLY $1.2M PURCHASE PRICE
REMODELING / CONSTRUCTION EXPENSES Estimated Expenditures for Hotel Acquisition, Remodeling, & Construction of Villas
BOUTIQUE HOTEL/ RESORT $900K PURCHASE PRICE
REMODELING & CONSTRUCTION Estimated Expenditures for Hotel Acquisition, Remodeling, & Construction of Villas
BOUTIQUE HOTEL/ RESORT $1.2M PURCHASE PRICE
Do Ii need to show other development figures with higher purchase prices? It would change the architect fees, etc.
FINANCIAL MODEL ASSUMPTIONS • • • • • • • •
The company will be run as a large self-contained resort. It will operate as a lifestyle business, without an extensive focus on profit. Dynamic pricing or seasonal pricing are not included in these particular models. Models are calculated at 21 keys, with rooms of various sizes and rates. (With the exception of Model ^B^, ADR is $188.) Calculations assume occupancy at 50%, ramping up to 55% occupancy in year 5. Profitability could increase dramatically with higher occupancy. Kimberly will act as the General Sponsor, investing $200,000, and living on-site for 9 months of the year. Salary is $50,000/year. Employee head count is 18, average salary is $750/month, plus December bonus. The addition of any residential investors or limited partners would improve financials and are modeled in separate scenarios.
OPERATING EXPENSES Estimated Operating Expenses for 21 Keys, 18 Staff, Average ADR $188
BOUTIQUE HOTEL/ RESORT
FINANCIAL MODELS PROVIDED IN THE APPENDIX REVENUE MODEL 1 REPRESENTS THE HOTEL INDUSTRY STANDARD, LODGING 40% OF REVENUE REVENUE MODEL 2 EXPLORES A SCENARIO IN WHICH THE RESTAURANT, DAY PASSES, AND CLASSES ARE LESS PROFITABLE (LODGING 70% OF REVENUE)
PURCHASE OPTION
REVENUE MODEL
A: New Construction with Mortgage
Land: $1,380,000 - 8% over 360 months; Construction: $1,531,400 - 10% over 60 months
B: Existing Hotel with Mortgage
Property: $1,380,000 - 8% over 360 months; Construction: $1,022,573 - 10% over 60 months
C: Existing Hotel NO Mortgage
Property: $2,500,000 - retained by investors Construction: $1,022,573 - 10% over 60 months
D: Existing Hotel NO Mortgage
Property: $4,000,000 - retained by investors Construction: $1,022,573 - 10% over 60 months
1: Lodging 40% of Revenue
2: Lodging 70% of Revenue
A1
A2
B1
B2
C1
C2
D1
D2
PURCHASE OPTIONS A AND B PROVIDE AN ESTABLISHED RATE OF RETURN (LOAN MODEL) PLUS 50% PROFIT SHARING PURCHASE OPTIONS C AND D USE A 90% PROFIT SHARING MODEL WHERE THE INVESTORS RETAIN THE PROPERTY (OR DONATE IT TO THE NON-PROFIT, CAPTURING THE TAX WRITE-OFF PLUS PROFIT SHARING) Page 48
REVENUE MODEL 1 Diversification of revenue streams provides resilience to changing markets or travel restrictions. In addition to lodging, there are several entry points for local residents or nearby tourists to interact with the facilities.
PERCENTAGE REVENUE PER INCOME STREAM (INDUSTRY STANDARD PERCENTAGES)
ANNUAL FINANCIAL FORECAST BY REVENUE STREAM
REVENUE MODEL 2 What if the restaurant, day passes, and classes are less profitable? The calculations below model a scenario in which the lodging revenue accounts for 70% of total revenue, instead of the industry standard of 40% for hotels.
PERCENTAGE REVENUE PER INCOME STREAM (LODGING AS 70% REVENUE)
ANNUAL FINANCIAL FORECAST BY REVENUE STREAM
Assumptions: 21 keys, 17 Employees, occupancy starts at XX Year 2024 and inc to XX Year 2027 (3%).
PROJECTED PROFITS
REVENUE MODEL 1: Lodging 40% of Revenue
A: New Construction with Mortgage
Land: $1,380,000 - 8% over 360 months; Construction: $1,531,400 - 10% over 60 months
PURCHASE OPTION
B: Existing Hotel with Mortgage
Property: $1,380,000 - 8% over 360 months; Construction: $1,022,573 - 10% over 60 months
^B^: Expensive Hotel with Mortgage
Property: $3,000,000 - 8% over 360 months; Construction: $1,022,573 - 10% over 60 months
C: Existing Hotel NO Mortgage
Property: $2,500,000 - retained by investors Construction: $1,022,573 - 10% over 60 months
D: Existing Hotel NO Mortgage
Property: $4,000,000 - retained by investors Construction: $1,022,573 - 10% over 60 months
A1
2026 NET PROFIT 21% LP RETURN 23.98%
B1
2: Lodging 70% of Revenue
A2
2026 NET PROFIT 14% LP RETURN 15.65%
B2
2026 NET PROFIT 22% LP RETURN 19.85%
2026 NET PROFIT 14% LP RETURN 15.7%
^B^1
^B^2
2026 NET PROFIT 28% LP RETURN 23.42%
C1
2026 NET PROFIT 27% LP RETURN 17%
D1
2026 NET PROFIT 27% LP RETURN 10.76%
2026 NET PROFIT 22% LP RETURN 17.67%
C2
2026 NET PROFIT 22% LP RETURN 8.79%
D2
2026 NET PROFIT 22% LP RETURN 5.49%
NOTE: I MAY WANT TO RECALCULATE C & D WITH HIGHER ADR LIKE I DID IN ^B^
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INVESTOR RETURNS MODEL A New Construction, Loan Model Plus 50% Profit Sharing A1
A2
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INVESTOR RETURNS MODEL B Existing Hotel; Loan Model Plus 50% Profit Sharing B1
B2
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INVESTOR RETURNS MODEL ^B^ Existing Expensive Hotel; Loan Model Plus 50% Profit Sharing; Higher ADR ^B^1
^B^2
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^B^1
REVENUE WITH HIGHER PRICED ROOMS MODEL ^B^1 (LODGING 40%)
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^B^2
REVENUE WITH HIGHER PRICED ROOMS MODEL ^B^2 (LODGING 70%)
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INVESTOR RETURNS MODEL C 90% Limited Partner, 10% General Partner Equity is returned to Limited Partners after 5 years (??) C1
I am assuming the loan, but not providing the loan itself, not sure how to represent this
C2
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INVESTOR RETURNS MODEL D 90% Limited Partner, 10% General Partner Equity is returned to Limited Partners after 5 years (??) D1
D2
INVESTOR RETURNS WATERFALL WATERFALL, IRR & EQUITY ***HELPPP***
This was done last month - update?
BREAK EVEN PROFITABILITY
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APPENDIX: STEPS TO FORMING A LLC b. Steps to Form an LLC (source) • Choose a Name for Your LLC. • File Articles of Organization. • Choose a registered agent. • Decide on member vs. manager management. • Create an LLC operating agreement. • Comply with other tax and regulatory requirements. • File annual reports. c. What Type of License is Needed to Start Boutique Hotel Business? • General Business License • Zonal Permits • Signage Permit • Operational State Facility Inspections e. What Documents are Needed to Start Boutique Hotel Business? • DBA • EIN • Business and liability insurance • Federal Tax Payer’s ID • State Permit and Building Approval • Certificate of Incorporation • Business License • Business Plan • Employment Agreement (offer letters) • Operating Agreement for LLCs • Insurance Policy • Online Terms of Use • Online Privacy Policy Document • Contract Document • Company Bylaws • Memorandum of Understanding (MoU)
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SUSTAINABILITY POLICY This will be developed with he board of advisors, but until then, this sample from Social Entrepreneurship in Hospitality: Principles and Strategies for Change, Legrand et al. 2021 (Inkaterra Case study pg 109) 1. Define and respect authentic cultural, social and environmental values. 2 Create professional development opportunities and encourage the recruitment and training of local staff. 3. Develop an ideal work environment providing better living conditions than those covered by labor laws. 4. Develop activities in accordance with current legislation, such as corporate, tax, labor and the
concepts of sustainable development. 5. Provide experience in the formulation of standards and creation of protected areas.
9. Use environmentally friendly products and maintain good communication with suppliers.
6. Develop contingency plans for natural, social or financial disasters.
10. Use energy and water efficiently, and provide adequate waste treatment.
7. Continuously update analyzed financial statements in order to facilitate the decision making process and the decentralization of administrative actions. raise awareness within partners, travelers and locals on the conservation of the environment, with activities and materials.
11. Develop continuous improvement in our management and process controls by minimizing negative impacts.
8. Encourage the development of local communities, taking into consideration their environment and culture.
12. Identify the positive and negative effects generated by human action. 13. Offset the greenhouse gas emissions generated by the organization’s operations, in order to be carbon neutral. 14. Being a replicable business model of low initial cost and high positive impact on local populations.
KEY PERFORMANCE INDICATORS Inspired by Authenticitys case study, and BCorporation’s Impact Assessment Criteria
entrepreneurial activity or through expanding knowledge?) (Authenticitys)
1. Employment (work environment, compensation benefits and wages, work ownership, long term governance impact assessment, mission and engagement, transparency, corporate structure) (B-Corp)
3. Environment (does the experience create awareness about environmental challenges?) (Authenticitys)
2. Education (are both travelers and local partners benefitting from educational activities? travelers through experiential learning and partners, such as social enterprises and NGOs, through engagement in
4. Community (job creation, diversity, civic engagement and giving, local involvement, suppliers distributors and product, environmental impact assessment, land office and plant, energy water and materials, emissions and waste, transport distribution and suppliers) (B-Corp)
BUILDING DESIGN: CURATED INSPIRATION
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TEXTILE DESIGN BOARDS
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TEXTILE DESIGN BOARDS
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RESOURCES BOOKS AND PODCASTS THAT HAVE PARTICULARLY INFLUENTIAL TO KIMBERLY’S DEVELOPMENT *Starred items have been assigned as class readings for undergraduate or graduate classes
*Donella Meadows, Thinking in Systems *Kate Raworth, Donut Economics: 7 ways to think like a 21-st century economist *Paul Hawken, Drawdown, Regeneration: Ending the Climate Crisis in One Generation, And Blessed Unrest *Joanna Macy And Molly Brown, Coming Back to Life *Macy And Johnstone, Active Hope Karl Bonnedahl And Pasi Heikkurinen, Editors, Strongly Sustainable Societies Priya Parker, The Art of Gathering Chris Anderson, TED Talks *Parker Palmer, Healing the Heart of Democracy; A Hidden Wholeness; Let Your Life Speak *Alex Evans, The Myth Gap Wendell Berry, What Are People For? The Unsettling of America Dave Gray, Sunni Brown, and James Macanfuo, Gamestorming * Daniel Christian Wahl, Designing Regenerative Cultures *Jonathan Hight, The Righteous Mind *Jane McGonigal, Reality Is Broken and Super Better *Carol Stanford, The Regenerative Business Atkins Wilson And Hayes, ProSocial: Using evolutionary science to build productive, equitable, and collaborative groups *Walker And Salt, Resilience Thinking and Resilience Practice Dave Burgess, Teach Like a Pirate Roy Rappaport, Ecology Meaning and Religion David Suzuki, The Sacred Balance Tim Brown, Change by Design Steven Brown, Political Subjectivity John Cabot-Zinn, Full Catastrophe Living *Dryzek, Debating the Earth and The Politics of The Earth David Takaacs, The Idea of Biodiversity Bill Burnett and Dave Evans, Designing Your Life Mary Pipher, Reviving Ophelia, and The Green Boat Anthony Hodgson, Systems Thinking for a Turbulent World Booth, Colomb and Williams, The Craft of Research Eckhart Tolle, A New Earth
RESOURCES 2 BOOKS AND PODCASTS THAT HAVE PARTICULARLY INFLUENTIAL TO KIMBERLY’S DEVELOPMENT *Starred items have been assigned as class readings for undergraduate or graduate classes
*Paul Hawken, Amory Lovins, and L Hunter Lovins, Natural Capitalism *Charles Eisenstein, Climate: A New Story Linda Nilson, Teaching at Its Best Joseph Campbell, The Hero’s Journey Ervin Laszlo, The Wisdom Principles *Peter Stroh, Systems Thinking for Social Change Michael Pollan, In Defense of Food; The Omnivore's Dilemma; The Botany of Desire Thomas Friedman, The World Is Flat CG Jung, The Undiscovered Self Fritjof Capra, The Tao of Physics *Aldo Leopold, A Sand County Almanac EO Wilson, The Diversity of Life Ann Garry, et al, Women Knowledge and Reality Christopher Stone, Earth and Other Ethics *Bill Cronon, Changes in The Land; The Trouble with Wilderness; Uncommon Ground *Caldecott, In Defense of The Land Ethic *Daniel Quinn, Ishmael *Robert Putnam, Bowling Alone Diane Ackerman, A Natural History of the Senses Barry Lopez, Of Wolves and Men David Quammen, Song of the Dodo and Planet of Weeds George Sessions, editor, Deep Ecology for the 21st Century *Bonnie McCay and James Acheson, The Question of The Commons Linda Rector Page, Cooking for Healthy Healing David Korten, Change the Story, Change the Future Riane Eisler, The Real Wealth of Nations Naomi Klein, This Changes Everything Carol Bly, Changing the Bully Who Rules the World: Reading and thinking about ethics *Raj Patel, The Value of Nothing *Bill McKibben, Deep Economy James Roberts, Shiny Objects Bigelow And Swinehart, A People's Curriculum for the Earth
RESOURCES 3 BOOKS AND PODCASTS THAT HAVE PARTICULARLY INFLUENTIAL TO KIMBERLY’S DEVELOPMENT *Starred items have been assigned as class readings for undergraduate or graduate classes
Anders Edwards, The Sustainability Revolution David Abrahams, The Spell of the Sensuous and Becoming Animal *Climate Central, Global Weirdness *Vandanta Shiva, Earth Democracy and Soil Not Oil *Desjardins, Environmental Ethics *Van Jones, The Green Collar Economy Peter Barnes, Capitalism 3.0 Macadam and Snow, Social Movements Rob Hopkins, The Transition Handbook Elizabeth Dodson Gray, Green Paradise Lost *Norton, Toward Unity Among Environmentalists *Carolyn Merchant, The Death of Nature Devall and Sessions, Deep Ecology *William McDonough And Michael Braungart, The UpCycle and Cradle to Cradle Adriane Maree Brown, Emergent Strategy *Gunderson, Holling, and Light, Barriers and Bridges to the Renewal of Ecosystems and Institutions Richard Thaler and Cass Sunstein, Nudge: Improving decisions about health, wealth, and happiness Wohlleben, The Hidden Life of Trees Cunningham & Cunningham, Environmental Science: A Global Concern Meffe and Carol, Principles of Conservation Biology Chappin, Kofinas, and Folke, Principles of Ecosystem Stewardship Biggs, Schluter, and Schoon, Principles for Building Resilience *Scott, Amel, Koger, and Manning, Psychology for Sustainability *Julian Agyeman, Just Sustainabilities Michel Gelobter, Lean Startups for Social Change
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