How can you conduct a feasibility study that leads to successful tourism products?

1 Define your objectives

The first step is to define your objectives clearly and realistically. What are you trying to achieve with your tourism product? Who are your target customers and what are their needs and preferences? How does your product fit into the existing tourism market and what are the gaps or opportunities that you can exploit? How will you measure your success and what are the indicators that you will use? By answering these questions, you will have a clear vision and scope for your feasibility study.

2 Gather relevant data

The second step is to gather relevant data that will help you analyze the feasibility of your tourism product. You will need both primary and secondary data sources, such as surveys, interviews, focus groups, market reports, industry statistics, competitor analysis, and benchmarking. You will also need to collect information on the legal, regulatory, and policy frameworks that affect your product, as well as the physical, social, and environmental factors that may pose risks or opportunities. The data should be reliable, valid, and up-to-date, and you should use appropriate methods and tools to collect and store it.

3 Conduct market analysis

The third step is to conduct market analysis, which involves estimating the demand and supply for your tourism product, as well as identifying your competitive advantage and positioning strategy. You will need to segment your target market based on criteria such as demographics, psychographics, behavior, and geography, and estimate the size, growth, and potential of each segment. You will also need to analyze the existing and potential competitors in your market, and determine how you can differentiate your product from them. You will then need to develop a unique selling proposition (USP) and a marketing mix that will appeal to your target customers and communicate your value proposition.

4 Conduct financial analysis

The fourth step is to conduct financial analysis, which involves estimating the costs and revenues of your tourism product, as well as evaluating its profitability and sustainability. You will need to prepare a detailed budget that includes all the capital and operating expenses, as well as the sources and uses of funds. You will also need to project the income and cash flow statements, as well as the balance sheet, for your product over a certain period of time. You will then need to calculate the key financial ratios and indicators, such as the net present value (NPV), the internal rate of return (IRR), the payback period, the break-even point, and the return on investment (ROI).

5 Conduct technical analysis

The fifth step is to conduct technical analysis, which involves assessing the technical feasibility and requirements of your tourism product, as well as the availability and quality of the resources and infrastructure that you will need. You will need to identify the technical specifications and standards that apply to your product, such as the design, construction, operation, maintenance, and safety aspects. You will also need to evaluate the availability and suitability of the land, water, energy, equipment, materials, labor, and technology that you will use. You will then need to consider the risks and challenges that may affect the technical performance and quality of your product, and how you can mitigate or overcome them.

6 Conduct social and environmental analysis

The sixth and final step is to conduct social and environmental analysis, which involves assessing the social and environmental impacts and benefits of your tourism product, as well as the stakeholder involvement and acceptance. You will need to identify the direct and indirect effects of your product on the natural and cultural resources, the local communities, the visitors, and the society at large. You will also need to evaluate the positive and negative externalities and the trade-offs that your product may create. You will then need to engage with the relevant stakeholders, such as the government, the industry, the NGOs, the media, and the public, and solicit their feedback and support for your product.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?