Swot Analysis

Strength

Natural Settings, climate and sea: Set high on the slopes above the village of Latchi amid a beautiful stretch of orange and olive groves, with picture-perfect views and natural vegetation the Resort provides perfect setting for the ultimate privacy and intimacy. The natural 2 km long beach with the crystal clear Mediterranean sea is just 3min walk across the road from the Resort and attracts beach- style guests.

Cyprus has 300 sunny day per year. Winters are mild with day temperatures rarely going below 15C. This make Cyprus an all year destination with a long season period. All 112 beaches tested in Cyprus for a European report have “excellent” water quality, putting the island at the top of the EU for bathing.

Lack of competition: The hospitality wellness concept is unique for Cyprus and there is no other upscale large property operating in the similar segment on the island.

Management team: The Resort is run by a team of professionals with extensive experience in hotel management and wellness. The Management is focused on building exclusive, hard to duplicate and profitable business.

Commitment to Sustainability: Sustainable practices promoted in the Resort attract modern environment-wise clientele as well as attention of media to the Resort. Commitment to sustainability practices (green energy,

Weakness

Limited airline connectivity to Paphos: Larnaca remains the main airport of Cyprus- it is located in approx. 2 hours drive from the Resort. Paphos airport, which is about 40 min drive from the Resort, is much smaller with less budget airlines flying to it.

Limited airline connectivity in winter: Despite positive climate conditions, the number of tourists arriving in winter to Cyprus is low due to low airline connectivity in winter months. Until more airlines operate yearlong in Cyprus, hotels will suffer from low occupancies in winter months.

High cost of transportation: There are no airport transfer by shuttle buses available in Cyprus for the Latchi area. Arriving tourists have to arrange their transfers by themselves or ask hotels to do this. The cost of taxi transfers are rather high in Cyprus that diverts tourists from selecting ZENING as a holiday destination.

Polis region is not developed or promoted: Despite few luxury properties located in areas surrounding the Resort, the Latchi area is not well developed. Building and surroundings need better maintenance and the area requires more investments and attention from government in general to make it an attractive product for tourists.

Opportunities

Rooms’ expansion potential: The area of the Resort is underutilized. The Promoter is planning to take advantage of available rooms expansion license and increase the number of rooms as well as build new dining facilities that will materially increase revenue generating capacity of the Resort

Longer season: The Resort is typically closed for winter months. The Promoter plans to extend the season by30 to 90 days leading to year round operations during the next 2 years.

High growth niche:: The Resort is operating in wellness niche that is of increasing interest to millions of western travelers. The wellness tourism sector itself is one of the fastest growing tourism sectors that will drive the Resort’s occupancy levels up in coming years.

Hostels Market Growth: Zening will focus on sales of beds rather than rooms and will shift from standard hotel model into hostel model of operations. From market analysis, it is clear that hostels  market is set to enjoy rapid growth driven by interests changes of millennial clientele. Market analysis also show that the hostels’ operations are typically more profitable than those of the standard hotels due to higher occupancies and lower operational costs associated with such business model.

 

Additional revenue generating services: The proposed plan to introduce additional services like personal development, weight loss, stress management workshops is to achieve the higher revenue per available room / bed and increase occupancy levels.

Budget airline connectivity: Budget Airlines and their reach creates ease of travel and increases demand for tourism.

Increased demand for tourism in Europe: Increasing outbound tourism from China and India to Europe is creating need for expansion. Increased tourism from Russia to safe destinations of Europe creates higher demand. Geopolitical crises have created new demand for European destinations.

Risks

Competition from lower priced hotels: ZENING mainly targets upper medium class and high-end clientele that will unlikely be interested in low- price segment of the market. However, there are a number of cheaper hotels in the area that may divert certain percentage of business from the Resort.

All-inclusive tour operators: Cyprus is a popular destination for tour operators offering mass economy all- inclusive tourism product, which has a material negative impact on a quality of tourists coming to Cyprus, economics of hotels business as well as business, social, economic and natural environment of Cyprus in general. More specifically:

  1. Lowering cost, compelling Cyprus tourism to compete with other sun-sea-alcohol destinations which are developing or underdeveloped economies. Hotels are losing their Cyprus identity and are sun-sea-alcohol destinations with rare interaction between tourists and Cypriots.
  2. Cyprus no longer has cheap unskilled labour and even the lowest standard labour has high wages as imposed by EU and Union which make the all-inclusive business concept simply unprofitable for the business.
  3. All-inclusive concept is destructive for hotel brand- – all-inclusive customers are bargain seekers and not loyal vacationers and shift and change hotels as per costs advantages. No branding or identity of Cyprus hotel, difficult to earn customer loyalty as specs and standards are of Tour Operators.
  4. All-inclusive concept does not provide room for financial growth, forcing hotel owners focus on cutting costs rather delivering value that severely damages not only reputation of the specific hotels but the whole destination.
  5. Cyprus remains a 190 days season destination due to dependence on charter flights and tour operator seasons.
  6. All-inclusive tourism which concentrates large groups of people in a relatively small space, is taxing on local environments. And that manifests in several different ways, from water and electricity consumption, to management and disposal of the increased waste, to the loss of cultivatable land to tourism projects.
  7. All-inclusive concepts result in exponential amount of waste that often gets pumped right back into the environment.
  8. Typically, all-inclusive business models result in workers being forced to tolerate poor working conditions, long work days, short-term contracts, economic vulnerability in the low seasons, incredibly low pay, and increased vulnerability to verbal abuse.

As that, all-inclusive erodes value of a destination and brand of a hotel and is viewed as significant risk for the tourism development in Cyprus.

Lack of qualified staff: The area of the Resort is comparatively remote. It is problematic to attract there experienced high quality hospitality labor. The Management may need to offer higher salaries to attract needed staff into the Resort as well as incur additional costs associated with providing accommodation for staff. This has negative impact on continuity, quality of the service as well as profitability of the business.

Competition from other wellness destinations: Cyprus is less famous yoga and wellness destination compared to Austria, Greece, Italy in Europe and India, Thailand, Bali and other Asian countries. ZENING may incur higher marketing costs to attract wellness tourist to Cyprus.

High prices in Cyprus: Cyprus is not a good value for money for some European and Russian customers. It may be more costly to attract tourists from these regions then it is anticipated by ZENING. Cyprus needs return to competitiveness and value for money.

Zening Brand

The sales and marketing strategy is built around ZENING brand recognition as the only authentic upscale wellness club destination.

The high quality wellness proposition of ZENING with quality nutrition, spa, Yoga, Meditation makes it a leading healing and wellbeing destinations in Southern Europe. ZENING Brand is focused around following key factors:

  • Affordable, upscale vacation & living for healthy mind, body and spirit.
  • An Authentic product with ethos of sincerity, genuineness, integrity.
  • Dedicated to constant change, creativity, innovation.
  • Service with traditional warmth and compassion. Treat the guest as family.
  • Dedication to sustainability,