Executive Summary
The desert tourist camp project in the tourism and hospitality sector in Jordan targets a promising market opportunity. With an investment of 185,000 JOD, it achieves a Net Present Value (NPV) of 78,956 JOD, an Internal Rate of Return (IRR) of 31%, and a payback period of 2.6 years.
| Indicator | Value |
|---|---|
| Initial Investment | ١٨٥٬٠٠٠ د.أ |
| First Year Revenue | ٢٥٠٬٠٠٠ د.أ |
| Annual Growth (CAGR) | ١٠٪ |
| Net Margin (Y1) | ١٢٪ |
| Return on Investment (Avg.) | ٢٤٪ annually |
| Net Present Value (NPV) | ٧٨٬٩٥٦ د.أ |
| Internal Rate of Return (IRR) | ٣١٪ |
| Profitability Index (PI) | ١ |
| Payback Period | ٣ سنة |
| Break-even Year | Year 3 |
| Expected NPV (Probability-Weighted) | ٨١٬٣٤٨ د.أ |
Assumptions and Basis
The figures in this study are based on project data, the nature of the tourism and hospitality sector in Jordan, and local market indicators, according to the following assumptions:
| Assumption | Value |
|---|---|
| Initial Capital | ١٨٥٬٠٠٠ د.أ |
| First Year Revenue | ٢٥٠٬٠٠٠ د.أ |
| Annual Growth | ١٠٪ |
| Cost of Goods Sold (COGS) | ٤٠٪ of Revenue |
| Operating Expenses | ٣٠٪ of Revenue |
| Tax/Zakat | ٢٠٪ |
| Discount Rate (WACC) | ١٥٪ |
| Study Horizon | ٥ سنوات |
Basis of Assumptions: Market prices and industry averages in Jordan
Project and Opportunity Description
Project, Opportunity, Business Model, and Customer: The project aims to provide a unique tourism experience in the Jordanian desert, focusing on quality and sustainability. Food, accommodation, and entertainment services will be provided to visitors.
Market and Demand Study
Market, Demand, and Drivers: Demand for desert tourism in Jordan is growing, with an increasing number of tourists visiting the region. The project is expected to meet this growing demand.
Market Sizing (TAM / SAM / SOM)
Qualitative Market Sizing Methodology: Market studies and tourism data in Jordan were used to determine market size and opportunity.
| Level | Annual Size | Description |
|---|---|---|
| TAM — Total Addressable Market | 10.0 مليون د.أ | Total serviceable demand |
| SAM — Serviceable Available Market | 5.0 مليون د.أ | The portion your model reaches |
| SOM — Serviceable Obtainable Market | 2.0 مليون د.أ | Your realistic early share |
Basis of Sizing: Market studies and tourism data in Jordan
Unit Economics
Measures the profitability of each sales unit/customer — the most accurate feasibility indicator:
| Unit Indicator | Value |
|---|---|
| Sales Unit | Customer |
| Average Price/Revenue per Unit | ٢٠٠ د.أ |
| Customer Acquisition Cost (CAC) | ٥٠ د.أ |
| Customer Lifetime Value (LTV) | ١٬٠٠٠ د.أ |
| LTV/CAC Ratio | ٢٠× (healthy) |
| Contribution Margin | ٦٠٪ |
Competitive Analysis
Competitors and Sustainable Advantage: The project competes with other tourism projects in the region, but it has a unique advantage in offering a high-quality desert tourism experience.
Market Entry and Pricing Strategy
Entry Plan, Marketing, Channels, and Pricing: Social media and online marketing will be used to promote the project, with special offers for groups and companies.
Capacity and Operations
Project Capacity: 50 rooms, Expected Occupancy: 70% in the first year
Daily Operations and Quality: The project will be operated by a trained local staff, with a focus on providing high-quality services to visitors.
Technical Aspects, Location, and Suppliers: The project will be built in a strategic location in the Jordanian desert, using local and environmentally compatible building materials.
Projected Income Statement (5 Years)
| Item \ Year | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|
| Revenue | ٢٥٠٬٠٠٠ د.أ | ٢٧٥٬٠٠٠ د.أ | ٣٠٢٬٥٠٠ د.أ | ٣٣٢٬٧٥٠ د.أ | ٣٦٦٬٠٢٥ د.أ |
| Cost of Sales | (١٠٠٬٠٠٠ د.أ) | (١١٠٬٠٠٠ د.أ) | (١٢١٬٠٠٠ د.أ) | (١٣٣٬١٠٠ د.أ) | (١٤٦٬٤١٠ د.أ) |
| Gross Profit | ١٥٠٬٠٠٠ د.أ | ١٦٥٬٠٠٠ د.أ | ١٨١٬٥٠٠ د.أ | ١٩٩٬٦٥٠ د.أ | ٢١٩٬٦١٥ د.أ |
| Operating Expenses | (٧٥٬٠٠٠ د.أ) | (٨٢٬٥٠٠ د.أ) | (٩٠٬٧٥٠ د.أ) | (٩٩٬٨٢٥ د.أ) | (١٠٩٬٨٠٨ د.أ) |
| EBITDA | ٧٥٬٠٠٠ د.أ | ٨٢٬٥٠٠ د.أ | ٩٠٬٧٥٠ د.أ | ٩٩٬٨٢٥ د.أ | ١٠٩٬٨٠٨ د.أ |
| Tax | (٧٬٦٠٠ د.أ) | (٩٬١٠٠ د.أ) | (١٠٬٧٥٠ د.أ) | (١٢٬٥٦٥ د.أ) | (١٤٬٥٦٢ د.أ) |
| Net Profit | ٣٠٬٤٠٠ د.أ | ٣٦٬٤٠٠ د.أ | ٤٣٬٠٠٠ د.أ | ٥٠٬٢٦٠ د.أ | ٥٨٬٢٤٦ د.أ |
| Net Margin | ١٢٪ | ١٣٪ | ١٤٪ | ١٥٪ | ١٦٪ |
Investment Cost Structure
| Item | Cost | Percentage |
|---|---|---|
| Construction Cost | ٥٥٬٥٠٠ د.أ | ٣٠٪ |
| Operating Cost | ٤٦٬٢٥٠ د.أ | ٢٥٪ |
| Marketing Cost | ٢٧٬٧٥٠ د.أ | ١٥٪ |
| Staff Cost | ١٨٬٥٠٠ د.أ | ١٠٪ |
| Other Costs | ٣٧٬٠٠٠ د.أ | ٢٠٪ |
Cash Flow and Break-even Point
| Year | Operating Cash Flow | Cumulative Cash Flow |
|---|---|---|
| Year 1 | ٦٧٬٤٠٠ د.أ | -١١٧٬٦٠٠ د.أ |
| Year 2 | ٧٣٬٤٠٠ د.أ | -٤٤٬٢٠٠ د.أ |
| Year 3 | ٨٠٬٠٠٠ د.أ | ٣٥٬٨٠٠ د.أ |
| Year 4 | ٨٧٬٢٦٠ د.أ | ١٢٣٬٠٦٠ د.أ |
| Year 5 | ٩٥٬٢٤٦ د.أ | ٢١٨٬٣٠٦ د.أ |
Estimated break-even point at annual revenue ≈ ١٨٦٬٦٦٧ د.أ (~٧٥٪ of first year's revenue), with a contribution margin of 60%. Cumulative cash break-even in Year 3.
Funding Structure
| Funding Source | Percentage | Amount |
|---|---|---|
| Equity | ٦٠٪ | ١١١٬٠٠٠ د.أ |
| Debt Financing (8% interest) | ٤٠٪ | ٧٤٬٠٠٠ د.أ |
Sensitivity Analysis (Revenue × Operating Costs)
Impact of simultaneous changes in revenue and costs on Net Present Value:
| Revenue \ Operating Costs | −10٪ | −5٪ | Base | +5٪ | +10٪ |
|---|---|---|---|---|---|
| −20٪ | ٩٤٬٩٠٠ د.أ | ٦٣٬٠١٣ د.أ | ٣١٬١٢٦ د.أ | -٧٦١ د.أ | -٣٢٬٦٤٧ د.أ |
| −10٪ | ١٢٦٬٧٨٦ د.أ | ٩٠٬٩١٤ د.أ | ٥٥٬٠٤١ د.أ | ١٩٬١٦٩ د.أ | -١٦٬٧٠٤ د.أ |
| Base | ١٥٨٬٦٧٣ د.أ | ١١٨٬٨١٥ د.أ | ٧٨٬٩٥٦ د.أ | ٣٩٬٠٩٨ د.أ | -٧٦١ د.أ |
| +10٪ | ١٩٠٬٥٦٠ د.أ | ١٤٦٬٧١٥ د.أ | ١٠٢٬٨٧١ د.أ | ٥٩٬٠٢٧ د.أ | ١٥٬١٨٣ د.أ |
| +20٪ | ٢٢٢٬٤٤٦ د.أ | ١٧٤٬٦١٦ د.أ | ١٢٦٬٧٨٦ د.أ | ٧٨٬٩٥٦ د.أ | ٣١٬١٢٦ د.أ |
Scenario Analysis
| Scenario | Probability | NPV | Assessment |
|---|---|---|---|
| Pessimistic | ٢٥٪ | ١١٬٩٩٤ د.أ | Feasible |
| Base | ٥٠٪ | ٧٨٬٩٥٦ د.أ | Feasible |
| Optimistic | ٢٥٪ | ١٥٥٬٤٨٤ د.أ | Feasible |
Expected Present Value (Weighted): ٨١٬٣٤٨ د.أ.
Risk Analysis and Management
| Risk | Probability | Impact | Mitigation |
|---|---|---|---|
| Environmental Risks | Low | High | Take preventive measures |
| Financial Risks | Medium | High | Secure sufficient funding |
| Operational Risks | Medium | Medium | Provide adequate staff training |
| Marketing Risks | Low | Low | Provide an effective marketing plan |
Organizational Structure and Team
Structure and Personnel: A project management team will be formed, with the recruitment of local and specialized tourism staff.
Legal and Regulatory Aspects
Licenses and Compliance: All necessary licenses and permits for the project will be obtained, with compliance to local laws and regulations.
Expansion and Sustainability Plan
Expansion and Sustainability: The project will be expanded in future stages, with a focus on sustainability and quality.
Environmental, Social, and Governance (ESG) Impact
Environmental, Social, and Governance Impact: All necessary measures will be taken to identify and reduce the environmental impact of the project, with a focus on governance and social responsibility.
Conclusions and Recommendations
Conclusion and Recommendation: The project is considered feasible and profitable, providing job opportunities and economic growth in the region.
Frequently Asked Questions
How much does it cost to build the camp?
185000
How much does the camp earn in the first year?
250000
What is the project's capacity?
50 rooms
Is the camp project profitable in Jordan?
Yes
What services will be provided at the camp?
Food, accommodation, and entertainment
Sources and Disclaimer
- Market Studies
- Tourism Data in Jordan
- Financial Reports of Similar Projects
Disclaimer: This is a guiding study that provides financial analysis according to approved industry standards; verify the figures locally according to your project's reality before any investment decision.
