Port Aventura

Questions:
Would you buy shares in Port Aventura? Study the economic and financial
business model, the competitive environment, and the market trends. What
are the critical levers that influencethe profitability of the business? How do
they relate to one another?
I would not buy shares in Port Aventura because we paid only 1.84 in financial Expenses during this year, and during the nextyear the will have to pay into the concept other debts 5.73 billion which more or less means that if we do not take into account other things we should have (5.73-1.84) = 3.84 more debt, and during thenext years we will have to pay each year 5.73 Euros because the loan is for 5 years. High ratio of debt over total assets (73%).

2. What is your assessment of the results obtained in the first year?Negative profit compared to high debt and capex invested.
However, Port Aventura got really good results (exceeded expectations by 110k people and 2bn pesetas in sales)
3. What should be themanagement agenda for Port Aventura’s second
season? What should be the priority for 1996 with regard to attracting
customers? Is it a good idea to reduce to a minimum the use of joinT
promotionsoffering Port Aventura tickets as free gifts? Is it practicable and
reasonable to reduce the discounts offered to the channel in 1996?
Manage the delay in payments to the Credit Institutions, because ifhe does not do so they will not have enough assets to pay them, or to change the strategy of the tickets. The average price cannot be 2291 ptas per ticket if the real price is an average of 3500 Weneed more revenues.
Increase sales on ticket sales (very low in 1995) and to reduce the use of free gifts is a good idea. Preferable to increase ticket sales and maintain F&B revenues. Also, bychanging the product assortment at merchandising stores, sales were expected to increase.
To attract customers Port Aventura should focused on:
* Foreigners going on vacation to Catalonia...