Mineral Hot Spring Resort

I. Case Background

Victor Heerrera, Sr., Chairman of the Board of Blue Heights Realty and Development Corporation was planning to start on a project, a mineral hot spring resort at Bucal, Calamba, Laguna called Halina Mountain Resort. He would like it to leave as something he could leave for his family after his retirement.

Blue Heights Realty and Development was established in October 1976 attached in owning, improving and managing real state. The company owned 2.2 hectares of land in Bucal, Calamba, Laguna. Herrera inherited the 1.5 hectares from his father and the rest was purchased after obtaining commissions in trading. In March 1977, asked his son Victor, Jr., a business economics graduated at University of the Philippines to conduct a survey and gather relevant data and information about some resorts in Laguna for the proposal of the project.

Table 1.0 Resorts Information

He also wrote a formal letter to the Ministry of Tourism upon requesting approval of establishment of a resort and stated his reasons for going into resort trade. Victor, Sr., also made a loan application in Far East Bank and Trust Company for a P 1,300,000.

Table 1.1 Application Loan

However, he wondered if the bank would share his opinion. There is no assurance if the bank would guarantee the merits of his proposal and there is no doubt for him that his project is viable and attractive and the reports are unbiased.

II. The Halina Mountain Resort

A. An Overview

1. Location Factor

The resort is located at Bucal, Calamba, Laguna approximately 56 kilometers south of Manila. The site would be in 2.2 hectare property at the foot of Mt. Makiling close to the right side of National Highway and overlooking the Laguna de Bay. Surrounding this proposed project are First Class subdivisions and resorts which are presently inadequate to meet the needs and demands of foreign and domestic tourist. It would be the first mineral hot spring found in Laguna.

2. Health Factor

The existence of mineral hot spring is considered as curative values for those who have arthritis, hypertension, paralysis and other physical therapy. Most of the tourist come in this place to relax themselves are those who have tensions in their lives like doctors, medical men, etc.

3. Public Demand

The government has declared a policy to accelerate national development through the promotion of out Tourist Industry and the establishment of tourist spots all over the country including mineral hot