THE CONTENT IS CENTERED ON TOURISM PLANNING AND DEVELOPMENT. SPECIFICALLY IT FOCUSES ON CONDUCTING FEASIBILITY STUDIES WHEN PLANNING FOR TOURISM IN ANY AREA. THE AREAS COVERED INCLUDE DEFINITION OF FEASIBILITY STUDIES, IMPORTANCE OF CONDUCTING FEASIBILITY STUDIES, HOW TO CONDUCT A FEASIBILITY STUDY AND THE BENEFITS OF CONDUCTING FEASIBILITY STUDIES.

1. DTM 221 – TOURISM
PLANNING & DEVELOPMENT
FEASIBILITY STUDIES IN
TOURISM PLANNING

2. INTRODUCTION
• A feasibility analysis is used to
determine the viability of an idea,
such as ensuring a project is legally
and technically feasible as well as
economically justifiable.
• It is conducted in order to objectively
uncover the strengths and
weaknesses of a proposed project.

3. INTRODUCTION CONT’D…
• It tells us whether a project is worth the
investment—in some cases, a project may
not be doable.
• There can be many reasons for this, including
requiring too many resources, which not only
prevents those resources from performing
other tasks but also may cost more than an
organization would earn back by taking on a
project that isn’t profitable.

4. Why conduct a feasibility study?
• A feasibility study is conducted in
order to find answers to the following
questions:
1. Does the company possess the
required resources and technology?
2. Will the company receive a
sufficiently high return on its
investment?

5. Areas covered under a Feasibility
Study
1. Technical issues
• It helps organizations determine whether
the technical resources meet capacity and
whether the technical team is capable of
converting the ideas into working systems.
• Technical feasibility also involves the
evaluation of the hardware, software, and
other technical requirements of the
proposed system.

6. Areas covered under a Feasibility
Study…
2. Economic issues
• This helps organizations determine the
viability, cost, and benefits associated with
a project before financial resources are
allocated.
• It helps determine the positive economic
benefits to the organization that the
proposed project will provide.

7. Areas covered under a Feasibility
Study…
3. Legal issues
• This investigates whether any aspect of the
proposed project conflicts with legal
requirements like zoning laws, data
protection acts or social media laws.
• Let’s say an organization wants to construct a
new office building in a specific location. A
feasibility study might reveal the
organization’s ideal location isn’t zoned for
that type of business.

8. Areas covered under a Feasibility
Study…
4. Operational issues
• This assessment involves undertaking a
study to analyze and determine whether—
and how well—the organization’s needs
can be met by completing the project.

9. Areas covered under a Feasibility
Study…
5. Scheduling Feasibility
• This assessment is the most important for
project success; after all, a project will fail
if not completed on time.
• In scheduling feasibility, an organization
estimates how much time the project will
take to complete.

10. IN SUMMARY…
• When these areas have all been examined,
the feasibility analysis helps identify any
challenges the proposed project may face,
including:
i. Internal Project challenges: Technical,
Technology, Budget, Resource, etc.
ii. Internal Corporate challenges: Financial,
Marketing, Export, etc.
iii. External challenges: Logistics, Environment,
Laws, and Regulations, etc.

11. Steps in CONDUCTING a Feasibility
Study
• Conducting a feasibility study involves the
following steps:
1. Conduct preliminary analyses.
2. Prepare a projected income statement.
What are the possible revenues that the
project can generate?
3. Conduct a market survey. Does the project
create a good or service that is in demand in
the market? What price are consumers
willing to pay for the good or service?

12. Steps in CONDUCTING a Feasibility
Study CONT’D…
4. Plan the organizational structure of the
new project. What are the staffing
requirements? How many workers are
needed? What other resources are
needed?
5. Prepare an opening day balance of
projected expenses and revenue

13. Steps in CONDUCTING a Feasibility
Study CONT’D…
6. Review and analyze the points of
vulnerability that are internal to the
project and that can be controlled or
eliminated.
7. Decide whether to go on with the
plan/project.

14. Importance of A Feasibility Study
• The importance of a feasibility study is based
on organizational desire to “get it right” before
committing resources, time, or budget.
• A feasibility study might uncover new ideas
that could completely change a project’s
scope.
• Conducting a feasibility study is always
beneficial to the project as it gives you and
other stakeholders a clear picture of the
proposed project.

15. Importance of A Feasibility Study
CONT’D…
• Some key benefits of conducting a feasibility study
are:
Improves the focus of the team doing the project
Identifies new opportunities
Provides valuable information for better decision
making
Narrows the business alternatives
Identifies a valid reason to undertake the project
Enhances the success rate by evaluating multiple
parameters
Aids decision-making on the project

16. ASSIGNMENT 3
Watch the video using the link provided:
https://www.google.com/url?sa=t&rct=j&q=&es
rc=s&source=video&cd=&cad=rja&uact=8&ve
d=2ahUKEwi6ueaRkNWCAxUOUqQEHR4LD
rMQz40FegQIAxAw&url=https%3A%2F%2Fw
ww.youtube.com%2Fwatch%3Fv%3DWI6_sn
Ojlm0&usg=AOvVaw1Gkx9xn1Y6v9P7jGLCO
T2d&opi=89978449

17. Answer the following questions:
1. What does the term feasible mean?
(2marks)
2. When is the best time to do a feasibility
study? (2marks)
3. Suggest any 2 best practices to be followed
when conducting a feasibility study
(4marks)
4. In a summarized way, describe the contents
of a feasibility report
(7marks)

18. THANK YOU FOR PAYING
ATTENTION…