Financial Analysis Essay

8206 Words Oct 7th, 2014 33 Pages
Student Details
Surname
Azeez
Given name
Shamina Bhanu
Student Number
1232702
Email shamina.azeez@gmail.com Assignment Details
Module name
Accounting & Financial Management
Module Code
7AC002

For the attention of
Mark Price
Due date
14th April 2014 Assignment title
Financial Analysis Report All forms of plagiarism, cheating and unauthorized collusion are regarded seriously by the University and could result in penalties including failure in the unit and possible exclusion from the University. If you are in doubt, please read the following web page. Student’s Declaration
By submitting this assignment I SIGNAL & DECLARE my knowledge and agreement to the following: -
Except where I have indicated,
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This sector is positioned to benefit directly from the anticipated boom in tourism is the Sri Lankan hotel industry. After nearly 3 decades of operating in an extremely challenging environment amid the military conflict, the outlook on the industry has now completely turned around and it is expected to play a wider role in Sri Lanka’s future economic development.

The Hotel Industry on a global basis is characterized by high capital costs and a high proportion of fixed costs to the total costs. There are considerable economic of scale in the local hotel industry. This high capital costs requires that the hotel must be managed to achieve the most cost effective use of resources. The growth of the Hotel Industry in most metropolitan cities is limited by the availability of suitable locations. Access to distribution channels can be a problem, but this factor can be mitigated by a connection with an international hotel chain. . The industry exhibits high entry barriers restricting new entrants, particularly because of the combined factors of economies of scale and high capital cost of entry, together with the limited supply of suitable locations. The Hotel Industry in all major cities is not threatened by substitute products except that in times of recession domestic travel might replace international or overseas travel and certain destinations replace more

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