1. About Moldova

Introduction

Global experts say, in perspectives three main businesses will rule the world of services - informational technology, telecommunication and tourism.

Moldova offers a lot to its visitors. Accommodation is not difficult to find in Moldova, but cheep accommodation is a challenge for budget travelers. The present business plan demonstrates the necessity and sustainability of opening of a youth, backpackers, budget hostel in Moldova.
· Moldova is situated in the southeastern Europe between Romania and Ukraine. Moldova was a former URSS republic, and recovered its independence in 1991.
· The country area is 37,3 sq m.
· In Moldova live about 4 million people. Among them 64% are Romanian, 14 -% Ukrainian, 13% Russian, and also Gagauz, Bulgarians, Gypsies, Jews. Majority of the population are orthodox Christians (Greek rite).
· The climate is continental temperate, characterized by moderately cold winters (average temperature -3-5 C) and moderately hot summers (average temperature 20-25 C). Moldova uses the Celsius scale.
· The local time is GMT+2
· Moldova uses metric system.
· Electrical system - 220V, 50Hz.
· The Moldavian Leu (MDL - 1 leu=100 bani) was introduced in 1994 and it is convertible currency. As of December 2004 1 US dollar =13 lei, 1 Euro=17 lei. Exchange offices are easy to find. International payment system are accepted in Moldavian banks and some shops (Visa, MasterCard, travel check).

2. Tourist market in Moldova

The peak of incoming tourism in Moldova was 1991, when more than 350 thousand tourist visited Moldova. Moldova was visited for its sanatoriums, natural recourses, historical and events monuments.
Even if the number of tourist decreased dramatically, in the last three years visitors number registers increase with 20% annually.

The importance of the incoming tourism was recognized on the Governmental level and tourism is declared as one of the strategically direction of development in Moldova. The tourism activity is regulated by Tourism Law, nr.798-XIV from 11 February 2000. The activity of all companies involved in tourism is monitored by Tourism Department.

2.1 Tourist attractions in Moldova

Chisinau - Moldova's capital city
Charming green city (parks, alleys, squares, garden and fountains cover about 4000 ha), relative quiet, many good restaurants and bars.
Along with traditional Moldavians, Russian, Jewish, Armenian, Greek and other historical heritage can be found throughout the city.

Transnistria, Tiraspol - living museum of Communism in the open sky
In this location everything reminds the former URSS - names of the street, Lenin's monument, red-green flag and the tank T-34, erected on a pedestal.
Transnistria or Transdniester (Russian: Pridnestrov'e, Romanian: Transnistria) is a region in eastern part of Moldova, with a capital at Tiraspol.

Cricova - the largest underground winery
The biggest cellars in the whole world are, with no doubt, situated in Cricova, Moldova. Here, underground lies a real city of wine - with wide streets, warehouses, tasting-rooms and so on. In the underground streets like "Cabernet", "Feteasca", "Pinot", buses of tourists find their way to the cellars. The total length of the underground galleries in Cricova exceed 60 kms, and the constant annual temperature is +12 oC. With an average humidity of 97-98% these are perfect conditions for keeping some 30.000.000 liters of high quality wine.

Emil Racovita Cave - one of longest in the world.
It is one of the biggest caves in the world. The length of the underground galleries is more than 89,000 m and they are on several levels. The cave is considered to be on the 3rd largest gypsum cave in the world and the 8th in terms of the length of its underground paths.

Hand made traditional art
Moldova is known for its handcrafts. Tours to handmade master's pitorestique villages are organizes in order to see how they are made: wood, stone, ceramics, basket weaving, making musical instruments, weaving in vegetal fibers (rush, corn husk, straw), carpet weaving, national towels weaving, crocheting.

Above mention attractions are only few of many, which Moldova can offer to its visitors. Among other can be mentioned
· several wine routes (Moldova has centuries tradition of in wine making);
· famous in scale monasteries;
· participation in different holyday and festivals - wine festivals (October, Chisinau city day - 14 October, Jazz festival, movies, theatre opera festivals, Unique traditional Martisor festival, folklore festivals, etc)
· Visiting monasteries and churches - there are more than 15 on the Moldovian territory (among other can be mentioned - Capriana Convent - one of the oldest in Moldova (1429). For a long period of time it was the headquarters of Moldova's bishop).
· Experiencing rural and ecological tourism
· Visiting Gagauzia region - populated by Christianized Turks.
· Spa and health centers
· Natural recourses
· In Ungheni city there is a bridge build by famous Eiffel
· Bender city for three years was capital of Sweden

And along with traditional tourist attractions, human experience is the most touching and interesting. Only in Moldova a tourist can experience the unique bilingvism of its people - knowledge of a Latin language - Romanian and Slavic language - Russian.

All above mentioned, shows that there is a lot to see in Moldova and it is potential for all type of tourists, including backpackers and budget travelers.

2.2 Tourism environment and infrastructure

2.2.1 Entrance requirements
Visitors form NIS countries and Romania, EU member states, Canada, USA, Switzerland, Norway and Iceland do not need visa to enter Moldova.

Persons, transiting the Republic of Moldova without a residence visa, can not stay on its territory longer than 72 hours. Transit visas are issued for foreign citizens and non-residents upon presentation of an entry visa to a third country.

Citizens of other countries can obtain a visa on the basis of an invitation letter either at the border of Moldova (Chisinau Airport, Sculeni, Leuseni, Cahul) or at the diplomatic and consular missions of the Republic of Moldova. A single entry visa for one month costs 60$, and fees varies according to the issuing modality

2.2.2 Transportation
Moldova has a developed transportation system. There is a modern airport, recently renovated railway station, two bus stations.
Air flights from Bucharest takes 1.5 hour, from Moscow 1.45 hour.
A train trip from Bucharest takes 12 hours, Moscow - 22 hours, Kiev - 10 hours, Odessa - 6 hours.

The public transportation is very developed both in capital city and throughout Moldova.
There are trolleybuses (1 lei trip), buses (2 lei trip), minibuses (3 lei trip), and taxis (30-50 lei for a trip within Chisinau).

2.3 Accommodation market in Moldova
There are more than 20 accommodation objects in Chisinau. Total accommodation capacity is about 1500 persons.

Up-market hotels are represented by 9 four stars hotels. Minimum prices are from 100$ per night.

Lower market hotels (National, Chisinau, Zarea, Meridian) are soviet type by architecture and services. The prices begin with 15$. Due to low services and as result of tourist lack, many rooms in these hotels are offered for rent for local companies.
As can be observed, there is a lack of hotel/hostel accommodation for budget travelers, which could offer accommodation for 10-15$ per night at a good quality level. You may find just bed or room at this rent offered by locals, but the capacity is limited to 2-4 beds and may not satisfy the requires of all budget travelers.

3. Economics of opening of a hostel in Moldova

Concluding all above mentioned, following are the reasons for opening the hostel:
· Till now, there is no accessible accommodation for budget travelers in Chisinau
· the entrance policy does incourage tourist to visit Moldova
· There is an interest from budget travelers* regarding Moldova, who will make hostel sustainable

*Experience of hosting backpackers (www.marisha.net offers of accommodation in Chisinau) shows that following tourist "type" come mostly to Moldova
· Backpackers who travel to Romania
· Backpackers who travel in former URSS republic
· Backpackers who travel throughout Eastern Europe

4. The hostel

The hostel has to be situated in the central part of Chisinau, or close to the train station as the major tourist attractions are situated here.

The hostel can be developed in two ways
1. Hostel in a 2 level house.
Two level houses can be found relatively easy in Chisinau, as which were build in abundance in late 1990 and yearly 2000. Nowadays, due to relatively high utilities cost to be supported by a family, they are sold or offered for rent.
2. Hostel developed from 2-3 apartments in a block on the ground floor.

The hostel is planned to have 4 dormitories, with 2 level beds in each, thus capacity of the dormitories would be 24 (18 for men and 6 for women). The price - 10 Euro per night per bed. Also, the hostel will have 1 or 2 private rooms (price - 20Euro per night per room).
The hostel should have 2 toilets and bathrooms for 2 persons each.

The hostel will provide breakfast
Besides the fixed assets purchasing 2 levels beds are necessary to purchase, some furniture, computer, phone, washing machine, mattresses,linens etc.

Planned occupancy rate of the hostel - in January -April 40%, in rest of the year 60%. Thus according to calculation, with an average staying of 3 days, 100 persons will stay per month in low season in the hostel and 140 person per month in high season.

With an investment of 100 000 EURO*, return of the investment is estimated at 3 years

*According to local laws, foreigners and foreign companies can buy fixed assets in Moldova.

Word version of this project

From
Marisha&Family
Cosy hostel-like apartment in Chisinau.
2 double and 1 single rooms.
10 Euro/night

More offers of budget accommodation and homestays from Marisha and her friends in Chisinau and other towns of Moldova&Transdniestr

1 EURO = 17 LEI