LYCEUM NORTHWESTERN UNIVERSITY

TAPUAC DIST., DAGUPAN CITY, PANGASINAN

COLLEGE OF ARCHITECTURE

ASSESSING THE VIABILITY OF ESTABLISHING A MID-

RANGE AND SUSTAINABLE HOTEL IN TONDALIGAN,
DAGUPAN CITY

PROJECT TO BE IMPLEMENTED IN TONDALIGAN,

DAGUPAN CITY, PANGASINAN

PRELIMINARY EXAM IN
PLANNING III: INTRODUCTION TO URBAN &R REGIONAL PLANNING

SUBMITTED TO:
ARCH. EMMANUEL PALAGANAS, EnP, UAP

PREPARED BY:
FERNANDEZ, JEFWARD JHON A.
BSARCH IV-A

FEBRUARY 2024
 ASSESSING THE VIABILITY OF ESTABLISHING A MID-RANGE AND SUSTAINABLE
HOTEL IN TONDALIGAN, DAGUPAN CITY

PROJECT INFORFMATION
PROJECT: PROPOSED MID RANGE AND SUSTAINABLE HOTEL
LOCATION: TONDALIGAN, DAGUPAN CITY, PANGASINAN
PROJECT TYPE: RESIDENTIAL BUILDING

ABSTRACT

This feasibility study examines the potential for developing a hotel in Dagupan City,
Philippines. The study focuses on assessing the market demand and financial viability of
establishing a hotel in the area. A comprehensive analysis of the local tourism industry,
including visitor trends and competitor analysis, was conducted to determine the market
potential. Financial projections were developed based on estimated occupancy rates, average
daily rates, and operating expenses. The study concludes that there is a strong demand for
hotel accommodation in Dagupan City, particularly for mid-range hotels. The financial
analysis indicates that the proposed hotel development is financially feasible and has the
potential to be a profitable venture. Furthermore, the developer must also assess whether a
boutique hotel would outperform other forms of accommodation. Conducting a feasibility
study would serve as a means to evaluate the hotel's competitiveness and its capacity to
generate revenue and profits.

I. INTRODUCTION
Located in the core of Pangasinan, Philippines, Dagupan City is a bustling urban center
known for its vibrant economy, thriving commerce, and scenic waterfront. According to
Maria Luisa Elduayan, the chief of the provincial tourism and cultural affairs office in
Pangasinan, announced on Wednesday, January 24th, that tourist arrivals in the province
showed a significant increase last year. She revealed that in 2023, the number of same-day
tourist arrivals reached 8.4 million, marking a remarkable 23.5 percent rise from the previous
year. This surge in tourism activity translated to approximately 1.9 million more tourists
visiting Pangasinan in 2023 compared to the 6.8 million arrivals recorded in 2022. marking a
significant increase in tourist arrivals compared to previous years. This growth in tourism has
driven the demand for accommodations in Dagupan City, leading to the proliferation of hotels
catering to various types of travelers. This overview explores the diverse landscape of hotels
in Dagupan City, highlighting their range of offerings, amenities, and their crucial role in
supporting the city's thriving tourism sector. Sustainable hotels aim to minimize their
environmental impact by implementing eco-friendly practices like conserving energy and
water, reducing waste, and using renewable resources. With its natural beauty and popularity
among tourists, Tondaligan could be an ideal location for a sustainable hotel, appealing to
travelers who prioritize responsible and genuine experiences. Besides attracting tourists, the
hotel could benefit the local community by creating jobs and supporting local businesses. To
ensure the project's success, it's important to conduct a comprehensive feasibility study and
seek advice from environmental specialist

II. PROBLEM STATEMENT

Constructing a hotel in Tondaligan Blue Beach, Dagupan City, presents a variety of
challenges that require careful consideration and planning. One significant challenge is the
potential environmental impact of the hotel's construction and operation on the beach's
delicate ecosystem. Measures must be taken to minimize this impact, such as implementing
sustainable building practices and ensuring proper waste management. Meeting regulatory
compliance is crucial but can be complex, as building a hotel in Tondaligan would require
obtaining various permits and approvals, including environmental impact assessments and
land use permits. Ensuring compliance with these regulations would require careful planning
and coordination. The hotel would also need to contend with seasonal demand fluctuations,
with peak tourist seasons attracting large crowds and off-peak periods experiencing lower
demand. Developing a strategy to manage operations and finances during these fluctuations
would be essential for the hotel's success. Furthermore, the hotel would face competition from
existing hotels in Dagupan City, which offer similar accommodations and amenities. To stand
out in the market, the hotel would need to differentiate itself by offering unique experiences
or amenities that appeal to its target market.

III. PROJECT OBJECTIVES

The primary aim of this project is to perform a feasibility analysis to assess the viability of
constructing a hotel with the potential for profitability. The specific objectives include:

A. To finalize a feasibility study that will act as a blueprint indicating the potential success of
the proposed hotel
B. To build a hotel that caters to the needs of both local and international tourists, offering
them an opportunity to immerse themselves in the culture of Dagupan. Additionally, to
generate sustainable employment and income for the local community.
C. To create a financial asset for the property developer and owner, capable of generating
substantial income. This will in turn contribute to the overall income generation for local
businesses
D. To drive economic growth in the region by creating job opportunities, supporting local
businesses, and generating revenue for the local government through taxes and fees

IV. LITERATURE REVIEW

OVERVIEW OF THE HOTEL IN THE PHILIPPINES

As reported by the Daily Inquirer in 2017, due to the Philippines' archipelagic nature, tourism
was identified early on as a readily accessible opportunity with significant potential to
enhance the economy. The prevailing belief was that by constructing roads to provide access
to the country's pristine beaches and other destinations, and encouraging the private sector to
establish hotels and other infrastructure, the tourism sector could be effectively developed.

As referenced by Ali (2015), an improved perception of hotel ambiance and staff courtesy,
food and beverage offerings, staff performance and knowledge, reservation services, and
value for money are likely to enhance customer satisfaction. This, in turn, may lead to
positive behavioral intentions such as a desire to revisit or recommend the hotel to others.

V. METHODOLOGY
The methodology / scope of the project work consist of the following:
1. Identify a suitable location within Tondaligan Blue Beach for the hotel and develop a
design that complements the natural surroundings while meeting the needs of guests and the
local community.
2. Obtain the necessary permits and approvals from local authorities and comply with relevant
regulations, including environmental impact assessments and land use permits.
3. Implement sustainable practices in the design, construction, and operation of the hotel to
minimize its environmental impact. This could include using eco-friendly materials, energy-
efficient systems, and waste management strategies.
4. Engage with the local community throughout the project to address any concerns, gain their
support, and ensure that the hotel benefits the community as a whole.
5. Build the hotel according to the approved design and timeline, ensuring compliance with
all regulations and standards.
6. Once the hotel is completed, establish effective management practices to ensure its efficient
operation and maintenance. This includes hiring and training staff, implementing guest
services, and maintaining the facilities.
7. Develop a marketing strategy to promote the hotel to potential guests and attract visitors to
Tondaligan Blue Beach. This could include online marketing, partnerships with travel
agencies, and hosting events or promotions.
8. Continuously monitor the hotel's performance, including guest satisfaction, environmental
impact, and financial sustainability, and make adjustments as necessary to ensure its success.

VI. ANALYSIS AND RESULTS

The tourism sector in the Philippines is rapidly expanding due to the rise in international
flights. The hotel industry is a key player in the country's tourism sector, with more hotels and
resorts catering to the international tourist market. In 2021, the Philippines ranked as the
world's fourth fastest-growing economy, with the tourism sector making a significant
recovery and contributing 10.4 percent to the GDP. The tourism and hotel industry in the
Philippines is expected to continue growing at a compound annual growth rate (CAGR) of
more than 10% by 2028. Therefore, this increase in tourist arrivals demonstrates a significant
contribution to our economic growth. And as mentioned earlier, PTCAO chief Maria Luisa
Elduayan said 3.5 million tourist arrivals were logged from January to July this year, 80%
higher compared to the first half of 2021 that recorded only 691,901 tourist arrivals.

Here are the possible results for a new hotel in Tondaligan having a lot of tourists:
1. Increased Revenue: A hotel in Tondaligan with a high number of tourists can expect
increased revenue from room bookings, food and beverage sales, and other hotel
services.
2. Boost in Local Economy: The influx of tourists to Tondaligan can benefit the local
economy by creating job opportunities, supporting local businesses, and increasing tax
revenue for the government.
3. Improved Infrastructure: The presence of a popular hotel in Tondaligan could lead to
improvements in infrastructure such as roads, transportation, and utilities, benefiting both
tourists and local residents.

Overall, a hotel in Tondaligan with a lot of tourists can have a positive impact on the local
economy and tourism industry, but careful planning and management are essential to ensure
sustainable growth and minimize negative impacts.
VII. CONCLUSIONS
The feasibility study for building a hotel in Tondaligan Blue Beach, Dagupan City, presents a
compelling case for the project's viability and potential success. The study's findings indicate
a strong market demand for accommodations in Dagupan City, particularly in the scenic and
increasingly popular Tondaligan Blue Beach area. The projected financial analysis suggests
that the hotel has the potential to generate positive returns, with revenues expected to exceed
operating costs and initial investment requirements. Despite potential environmental impacts
associated with construction and operation, these can be mitigated through sustainable
practices and adherence to environmental regulations. Additionally, the hotel's development
would bring significant benefits to the local community, including job creation and economic
growth. Overall, the feasibility study concludes that building a hotel in Tondaligan Blue
Beach is a viable and lucrative opportunity, provided that careful planning, stakeholder
engagement, and environmental considerations are prioritized throughout the project.