(7 pages of text)
In 2012, after conducting thorough research, two young entrepreneurs in Rwanda realize they have the opportunity to target the international budget tourists commonly referred to as “backpackers.” Only one European-style backpacker hostel currently exists in the capital city of Kigali, and the low-budget tourism industry remains significantly underdeveloped throughout the country. The partners have seen how successful this type of tourism has become in neighbouring countries and desire to replicate it in their homeland. One of them has inherited a piece of land in a quiet nature area by a lake only five minutes’ drive from a major international bus terminal. Although they have very few financial resources between them, they realize that a hospitality business providing tent accommodation and basic services will be cheap to operate and will attract budget-conscious travelers. Now, they must raise US$19,000 to start construction within the next six months before Rwanda’s high tourist season begins, and design a successful marketing plan to attract customers once the business opens.
This case is intended for introductory marketing, entrepreneurship or strategy classes at the undergraduate level with the following objectives:
- Understand the business context in Rwanda, particularly opportunities for tourism.
- Develop skills at creating a marketing plan including strategy, resources and costs.
- Practise financial analysis skills to examine the viability of a new venture.
Accommodation & Food Services
Africa, Small, 2012
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