Tourism Economics' ongoing analysis of traveler activity and economic dynamics provides a foundation for project feasibility analysis and market portfolio decisions.
We have conducted feasibility analysis for resorts, condominium hotels, sports events, museums, and retail centers in the US, Caribbean, and Middle East to secure financing, gain government approvals, and adjust development scopes. Our quantitative approach to project feasibility answers key questions: - Will the market support a proposed attraction or facility? - What does a reasonable scenario of market demand imply for cash flow, profitability, and return on investment? - What is the competitive market?
Our team also supports destination marketing organizations (DMOs) make rational decisions regarding the allocation of marketing funds. We apply a financial portfolio model to evaluate market opportunities and guide our clients’ investment decisions. A scorecard analysis presents a recommended allocation of marketing spending by visitor source market. Inputs to the analysis include dozens of indicators of market size and growth, destination and activity preferences, market presence, accessibility / barriers, purchasing power, and value per visitor.
The custom platform assesses the opportunity relative to the cost of marketing and then risk-adjusts all output based on client-defined criteria, including time horizons, and risk tolerances.