Financial Feasibility Analysis of the Asvara Resort Manuaba Ubud Development Project

DOI

10.2991/978-94-6463-587-4_33How to use a DOI?

Keywords

Financial Aspect; Investment; Resort

Abstract

The competitive landscape in Bali’s property market, characterized by the rise in the construction of hotels, villas, and resorts, along with the fluctuating tourist visitation rates over the past five years due to the pandemic, necessitates a reassessment of the investment feasibility for the Asvara Resort Manuaba Ubud project. This study seeks to evaluate the financial feasibility of investing in the construction of Asvara Resort Manuaba Ubud, aiming to determine whether the development remains profitable for investors. Additionally, the study explores how the benefits of the resort’s development can extend to the government and local community, thereby supporting the welfare and economy of the Gianyar Regency. For financial analysis, cost and revenue data from contractors and operators are analyzed using parameters like Net Present Value (NPV), Benefit Cost Ratio (BCR), Payback Period (PP), and Internal Rate of Return (IRR). The market analysis reveals an increase in tourist arrivals and occupancy rates, which is expected to positively impact the resort’s visitation. The technical analysis indicates that land utilization and allocation have been optimized for investment purposes. Financially, the project shows an NPV of IDR 16,706,385,995.27, an IRR of 19.67%, a BCR of 1.242, and a PP of 10 years. In a worst-case scenario, where revenues decrease by 8% and costs increase by 8%, the sensitivity analysis still yields a positive NPV of IDR 1,215,020,196.08, an IRR of 17.13%, a BCR of 1.018, and a PP of 13 years. Thus, the investment is concluded to be viable for investors.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - I Gusti Ayu Wulan Krisna Dewi
AU  - I Made Wahyu Pramana
AU  - I Komang Sudiarta
PY  - 2024
DA  - 2024/12/01
TI  - Financial Feasibility Analysis of the Asvara Resort Manuaba Ubud Development Project
BT  - Proceedings of the International Conference on Sustainable Green Tourism Applied Science - Engineering Applied Science 2024 (ICoSTAS-EAS 2024)
PB  - Atlantis Press
SP  - 283
EP  - 292
SN  - 2352-5401
UR  - https://doi.org/10.2991/978-94-6463-587-4_33
DO  - 10.2991/978-94-6463-587-4_33
ID  - Dewi2024
ER  -