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ADVENTURE PARK
TABLE OF CONTENTS

1 2 2.1 2.2 2.3 3 4 4.1 4.2 4.3 4.4 5 6 6.1 6.2 6.3 6.4 6.5 6.6 6.7 7 8

EXECUTIVE SUMMARY............................................................................ 2 PROJECT DESCRIPTION ......................................................................... 2 MAIN GOALS: ................................................................................................... 3 INVESTMENT REQUIREMENTS ................................................................................... 3 STAFFING STRUCTURE .......................................................................................... 4 SERVICE STRATEGY ............................................................................... 5 MARKET ANALYSIS ................................................................................ 6 MARKET TRENDS ............................................................................................... COMPETITION ANALYSIS ........................................................................................ TARGET MARKET ................................................................................................ SWOT ANALYSIS ............................................................................................... 6 6 7 7

MARKETING PLAN.................................................................................. 7 FINANCIAL PLAN ................................................................................... 9 MAJOR A SSUMPTIONS .......................................................................................... 9 PROJECTED INCOME S TATEMENT .............................................................................11 PROJECTED B ALANCE S HEET ..................................................................................12 PROJECTED C ASH FLOWS .....................................................................................13 RATIO ANALYSIS ...............................................................................................14 BREAK-EVEN ANALYSIS ........................................................................................15 SENSITIVITY ANALYSIS ........................................................................................15 RECOMMENDATIONS AND KEY SUCCESS FACTORS ................................ 16 ECONOMIC IMPACT EVALUATION......................................................... 16

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1 Executive Summary
The project consists in establishing an adventure park in Akkar caza. The concept will include camping tents for adults and children as well as activities and games such as hiking, biking, archery, ptanque and orienteering. The site will be operational from May to October and will gather nature lovers and summer campers from different ages. The initial investment for this project is estimated at $604,500, which includes construction, land settlement, equipments, vehicles and games along with working capital. The main assumptions consider conservative occupancy for the camping tents and all games. The projections are taken over a period of 5 years. The park is expected to provide an average annual net profit of $63,736. The project provides an internal rate of return (IRR) of 27% and a payback period of 4 years 8 months. These results show that the project is feasible. A worst-case scenario was developed with lower occupancy assumption. This scenario gives an average annual profit of $27,395. In this case the IRR is at 17% and the payback period is 6 years 5 months. A best-case scenario was developed with higher occupancy assumption. This scenario gives an average annual profit of $82,224. In this case the IRR is at 31% and the payback period is 4 years 2 months. The adventure park project is expected to positively reshape the economic and social environment of Akkar by offering 14 job opportunities and responding to a growing demand for adventurous activities in the mountains of Lebanon.

2 Project description
The project consists in establishing an adventure park in Akkar caza. The concept will offer to all nature-lovers and adventure-seekers the opportunity to live thrilling moments, performing unique outdoors sports and activities, in a green and friendly environment. It will include camping tents for adults and children as well as activities and games such as hiking, biking, archery, ptanque and orienteering. The project will have an ecotourism cachet in the sense that the breakfast will be prepared by the neighboring village ladies and an adventure park cachet in the sense of including games and activities to the concept. It is to be noted that there are few real ecotourism projects in Lebanon because the responsible eco-tourism and sustainable developments are very strict in terms of principles and respect of rules. There will be two separate areas: one for adults and another one for kids. Adults tents are equipped with 2 mattresses while kids tents include 3 mattresses each. Pillows, lighting and electrical outlets for mobile phones could be provided on demand. Bed sheets or sleeping bags are on the guests account. W.C.'s and showers are individual prefabricated units. Hot and cold water are made available. The project will be operational seasonally, from May until October of each year. It will target all nature lovers as well as children of the cazas school for their summer camps.

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2.1

Main goals:

Among the projects main goals: To To To To enhance open-air activities and contact with Nature work for a better knowledge of Akkar and its suburbs contribute in the preservation of the Environment promote hiking as means to good health, to leisure and to culture

Among the projects main activities: Camping Hiking, especially in Kammoua forest. Mountain biking Orienteering Games such as archery, ptanque Others

The Services offered include: Guiding and monitoring Rental of equipment Transportation

2.2

Investment requirements

The total investment amounts to $604,500, including office construction, land settlement and installation, equipments, vehicles and office furniture as long as working capital, as shown below:

Items Equipment Offices construction (500 m2) Land settlement and installation Tents and mattresses Prefabricated toilets Bus Games and tools Generator Mountain bikes Computer and office equipment Establishment costs New Investment Cost Working Capital Total New Investment Cost

Investment Requirements Quantity Unit Cost (in $) 1 1 40 20 1 1 1 20 50,000 50,000 7,500 2,100 20,000 50,000 15,000 200

Total Cost (in $) 50,000 50,000 300,000 42,000 20,000 50,000 15,000 4,000 20,000 3,500 554,500 50,000 604,500

The bus is needed mainly to transport passengers from the camping site to Kammoua forest.

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2.3

Staffing structure

The project will have 14 employees as shown in the following staffing structure:

STAFFING Nbr of staff General Manager Instructor Driver Security guard Total staff 1 10 1 2 14

All staff, except the general manger, are seasonal staff. The general manager will be responsible for the parks operations. He will handle the public relations part and the accounting tasks. During the dead season, the manager will prepare for the next season by working on the communication campaign, contacting potential clients and searching for updated and creative ideas for the parks service offerings. Instructors are hired based upon their experience in this field. All instructors should attend first aid sessions given by the general manager to handle bad incidents that may happen during the season.

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3 Service Strategy
The park will offer the following attractions and activities: 1. Camping: The campers can get away from urban areas and enjoy nature while spending one or more nights. Kids can experience this feeling while they are with their parents or by enrolling to the summer camp prepared especially for the kids. 2. Hiking: It will be mainly walking, at different levels, in the forest of Kammoua where the participants will explore and enjoy the scenery.

3. Biking: Several terrains will be available depending on the bikers. There will be some simple terrains, off road terrains and rough terrains.

4. Archery: For the precision sport lovers. It is the practice of using a bow to shoot arrows.

5. Ptanque: It is a form of balls where the goal is, while standing with the feet together in a small circle, to throw metal balls as close as possible to a small wooden ball called a cochonnet (jack).

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6. Orienteering: It is a running sport involving navigation with a map and compass. This activity will be practiced in all forests and attractive places around the caza.

4 Market Analysis
4.1 Market Trends

Lebanon enjoys a natural beauty which makes it a paradise for nature lovers and a unique place where hiking, skiing, bird watching, photographing, camping and other activities can be performed in all seasons. A lot of forests in Lebanon are perfectly reserved with a rich and varied flora. Among those nature reserves, Kamouaa is considered one of the important ones which has more than 10 million trees of fifty different species, including junipers, cedars, and Cilician firs. It covers 30 kilometers by 25, from the valley of Gehanam to the sources of Qobayyat, and from the source of Fnaydek to that of the Nassarahs of Qobayyat. It stands at an altitude of 1,600 meters and is considered unique in its charm as an ecological and tourist centre. With the end of the civil war and the departure of Syrian troops, stability in the region, especially around forests and remote villages, increased. Thus, ecotourism projects and adventure parks were on the rise, mixing pleasure with nature. Many Europeans and Americans visited Lebanon in the last years and were targeting its nature. These projects secured their demand and pushed more opportunities in this field. It is to be noted that such projects are tourism projects and are always affected by the political situation. On the other hand, due to the limited activities that are offered for youngsters in Lebanon, and due to very hot summers, many citizens prefer to head to the mountains. By creating adventure parks, many families could spend a weekend in the nature and parents can send their children to summer camps offered at such parks.

4.2

Competition analysis

Currently, there are several large adventure parks in Lebanon La Reserve Afka in Mnaitra area, which offers a variety of activities and a summer camp for children Sherwood camp in Mrouj Chahtoul camping Ecovillage in Dmit valley Nature Land in Bzebdine Etc La Reserve Afka has the largest market share due to its marketing campaign, its good management and its well-established presence in the market.

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4.3

Target market

The project will have the following target market: People loving nature and wanting to experience outdoor activities People that are adventure minded Families running away from the city burden Kids of the caza for summer camps Scouts or NGOs Companies that are searching for corporate outings Tour operators Etc

4.4

SWOT analysis
WEAKNESSES The seasonality of this project. The adventure park will only be operational during the summer season.

STRENGTHS The adventure park will be unique in Akkar caza and this will constitute an important advantage. It will be a motive for vacationing expatriates to spend more time in Akkar. OPPORTUNITIES The adventure park could have different themes, such as botanical weekend, educational weekend, birds watching weekend, etc thereby increasing its attractiveness The lack of such projects in the North makes the adventure park a destination by itself to the Akkar caza.

THREATS Generally, youngsters have a tendency to prefer other outings such as pubs and restaurants. Increasing competition in this field. The political instability at the regional level could negatively affect the project.

5 Marketing Plan
The adventure park will base its marketing strategy on the following: Increasing the image of ecotourism among its activities and the benefits of discovering nature. Preparing an attractive and informative flyer that will be distributed in schools, universities, as well as sports shops all over Lebanon. The flyer will display the photos of the site as well as the activities offered along with their prices. Establishing contacts with schools and scouts in order to invite them to organize summer camps and events. Offering discounts to tour operators in order to strengthen the cooperation and be listed among their programs. Special offers could combine camping and different activities at special discounted prices.

Tour Operators
Following is a list of tour operators that the management can contact to invite them and arrange cooperation agreements with them:

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1) Baldati: a national development, environmental, and cultural association which works to develop simple and practical methods by which to revive Lebanese villages, reunite their communities, support their institutions, and encourage dialogue among them and their members. 2) Biladi: specialized company working for the promotion of cultural and natural heritage through the use of media and education. It features site excursions for young people and strives to create a psychological and emotional link between children and the archeological remains 3) Blue Carrot Adventure Club: offers different outdoor activities including snowshoeing, cross country skiing, hiking, mountain biking, canoeing, rafting, rock climbing, paragliding, camping, amateur caving, horseback riding, diving, and tailor-made activities. 4) Club des Vieux Sentiers: organizes regular walks every Sunday. 5) Cyclamen: tour operator specializing in responsible tourism outfitted trips and events that combine rural and agro tourism, botanical tours, theme programs, pilgrimage, ecotourism, and outdoor activities (hiking, cross-country skiing, snow shoeing, camping) with overnight stays in local guesthouses for a real taste of Lebanon. 6) Esprit Nomade: organizes weekly trips and tailored trips for private groups. Activities include hiking, trekking, rural tourism, mountain biking, camping, night fishing, etc. 7) Gravity Trek: organizers of outdoor activities and trips that include hiking, trekking, camping and overnight. 8) Ibex Ecotourism: organizers of hiking, trekking, cultural and pilgrimage trips, in addition to cross-country and skiing activities. 9) Friends of Nature with no boundaries 10) Lebanese Adventure: offers ecotourism and sport tourism activities that include rafting, biking, snowshoeing, star gazing, hiking, bird watching, animal watching, and many others. 11) Lebanon Roots: tour operator specialized in religious tourism and pilgrimage. Lebanon Roots offers specialty tours and packages within Lebanon with main focus on visits to monasteries and other religious and cultural sites, overnight accommodation at Maronite monasteries; as well as pilgrimage to sites associated with major saints in Lebanon 12) Liban Trek: Ecotourism Company whose main focus is on hiking, trekking, cultural tours and alternative traveling. Liban Trek organizes tours in Lebanon and abroad. 13) Responsible Mobilities: supports mountain monitoring and research programs, and educates visitors about the effects of climate change on mountains and coasts by organizing international days and national events 14) The Club of Hidden Roads of Lebanon 15) TLB Destinations: offers trips off the beaten track throughout the Middle East and specializes in: hiking, trekking, adventure and discovery, cultural and pilgrimage trips. 16) Vamos Todos: ecotourism club that loves nature and offers hiking, snowshoeing and rafting. They support the visited regions by buying local goods and using the services of local guides.

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6 Financial Plan
This section details the calculations, assumptions and methodology used as a basis for the projections of the expected financial performance of the adventure park. The assumptions are conservative and are based on market achievable levels.

6.1

Major Assumptions

The adventure park will be operational 6 months per year with the following assumptions:
Camping for Camping for adult (Bed & children Hiking (2 Biking (1 Archery Ptanque Orienteerin Breakfast) (B&B) hours) hour) (1.5 hour) (2 hours) g (1 hour) 13.3 8.7 3.3 6.7 5.0 3.3 6.7 40 60 40 80 32 40 40 1,200 1,800 1,200 2,400 960 1,200 1,200 16,000 15,600 4,000 16,000 4,800 4,000 8,0.00

Price Maximum capacity per day Maximum capacity per one month Maximum revenue per one month

The camping for adults and children is at LBP 20,000 and LBP 13,000 respectively. The price includes a healthy natural breakfast prepared by the cazas ladies. The maximum capacity per day for each activity and tent is calculated as follows: 20 tents for 2 adults per day 20 tents for 3 children per day A group of 10 hikers at a frequency of 4 times per day A group of 20 bikers at a frequency of 4 times per day A group of 4 people playing archery (the park has 2 archery games) at a frequency of 4 times per day A group of 10 people playing ptanque at a frequency of 4 times per day A group of 10 people practicing orienteering at a frequency of 4 times per day. The tables below detail the estimated occupancy of each activity per month (in % and in dollar value):
Camping for Camping for adult (Bed & children Hiking (2 Biking (1 Archery Ptanque Orienteerin Breakfast) (B&B) hours) hour) (1.5 hour) (2 hours) g (1 hour) 10% 5% 20% 20% 20% 20% 20% 25% 15% 30% 30% 30% 30% 30% 60% 80% 60% 60% 60% 60% 60% 80% 80% 60% 60% 60% 60% 60% 70% 80% 60% 60% 60% 60% 60% 40% 10% 50% 50% 50% 50% 50%

In % May June July August September October

In USD May June July August September October

Camping for Camping for adult (Bed & children Hiking (2 Biking (1 Archery Ptanque Orienteerin Breakfast) (B&B) hours) hour) (1.5 hour) (2 hours) g (1 hour) 1,600 780 800 3,200 960 800 1,600 4,000 2,340 1,200 4,800 1,440 1,200 2,400 9,600 12,480 2,400 9,600 2,880 2,400 4,800 12,800 12,480 2,400 9,600 2,880 2,400 4,800 11,200 12,480 2,400 9,600 2,880 2,400 4,800 6,400 1,560 2,000 8,000 2,400 2,000 4,000

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The following table details the sales growth over the years:

Sales Growth Growth

Year 2 10%

Year 3 10%

Year 4 5%

Year 5 5%

The following tables summarize the income statement and balance sheet assumptions, which are mainly, based on expected performance levels:
Income Statement Assumptions

Cost of breakfast Cost of transport Rent of land Increase in rent Water Maintenance expense Fuel and oil Commission to tour operators
Annual increase in general expenses Annual increase in salaries Dividend payout starting year 5 Income Tax Rate

10% 0.5% $10,000 5% 1.0% 1.5% 5.0% 1% 4% 2% 40% 15%

of camping revenues of total revenues per year every 3 years of camping revenues of total revenues of camping revenues of total revenues

of net income

The cost of goods sold includes the cost of breakfast and the cost of transport. It is assumed that the land will be rented at $10,000 per year. Water, maintenance and fuel are the high expenses for such a project as they are the main raw materials.

Balance Sheet Assumptions Accounts Receivable Expenses payable 0.5 months of sales 10% of general expenses

The following table shows the depreciation rates, which are based on international accounting standards:

DEPRECIATION RATES Construction Installation Equipments Vehicles Computer and office equipment Establishment costs

2.5% 10% 10% 12% 20% 33.3%

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Staff structure
The project will have a total of 14 employees; the following table shows the staffing structure along with the salaries:

STAFFING Nbr of staff General Manager Instructor Driver Security guard Total staff 1 10 1 2 14 Monthly salary Total salaries 1,200 1,200 450 4,500 350 350 350 700 2,350 6,750

All employees are seasonal except the general manager who will be running the project throughout the year.

6.2

Projected Income Statement

The following income statement is based on conservative assumptions of revenues as well as costs.

ADVENTURE PARK PROJECTED INCOMESTATEMENT Revenues Revenues from camping Revenues from games and attractions Total revenues Expenses Cost of breakfast Cost of transport Rent of land Water Maintenance and repairs Fuel and oil Commission to tour operators Office supplies Cleaning materials Medical supplies Advertising and promotion Salaries and related charges Depreciation Others Total expenses EBIT Tax expenses Net Income Net profit Margin%

Year 1

Year 2

Year 3

Year 4

Year 5

87,720 103,040 190,760 8,772 954 10,000 877 2,861 4,386 1,908 600 2,400 1,000 5,000 47,700 54,917 3,000 144,375 46,385 6,958 39,428 20.7%

96,492 113,344 209,836 9,649 1,049 10,000 965 3,148 4,825 2,098 624 2,496 1,040 5,200 48,654 54,917 3,120 147,784 62,052 9,308 52,744 25.1%

106,141 124,678 230,820 10,614 1,154 10,000 1,061 3,462 5,307 2,308 649 2,596 1,082 5,408 49,627 54,917 3,245 151,430 79,390 11,908 67,481 29.2%

111,448 130,912 242,361 11,145 1,212 10,500 1,114 3,635 5,572 2,424 675 2,700 1,125 5,624 50,620 53,750 3,375 153,471 88,890 13,333 75,557 31.2%

117,021 137,458 254,479 11,702 1,272 10,500 1,170 3,817 5,851 2,545 702 2,808 1,170 5,849 51,632 53,750 3,510 156,278 98,201 14,730 83,471 32.8%

The project is profitable starting year 1 with increasing net profits reaching $83,471 by year 5. The management will be dealing with tour operators in order to secure constant clients for the

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project. A commission on sales will be paid to tour operators. A budget for advertising will be allocated and will mainly cover an attractive brochure and an informative website. The average net profit margin is at 27.8%

6.3

Projected Balance Sheet

The balance sheet shows the projected assets and liabilities of the company.

ADVENTURE PARK BALANCE SHEET ASSETS Cash and banks Accounts receivable Total current assets Construction Installation Equipm ents Vehicles Computer and office equipment Establishm ent costs Accumulated depreciation Net Fixed Assets Total assets 9,833 7,948 17,782 50,000 50,000 411,000 20,000 20,000 3,500 54,917 499,583 517,365 10,040 8,743 18,783 50,000 50,000 411,000 20,000 20,000 3,500 109,533 444,667 463,450 11,928 9,617 21,545 50,000 50,000 411,000 20,000 20,000 3,500 164,750 389,750 411,296 11,958 10,098 22,056 50,000 50,000 411,000 20,000 20,000 3,500 218,500 336,000 358,056 11,566 10,603 22,169 50,000 50,000 411,000 20,000 20,000 3,500 272,250 282,250 304,419 Year 1 Year 2 Year 3 Year 4 Year 5

LIABILITIES & OWNERS EQUITY Expenses payables Current liabilities Shareholders' account Long term liabilities Owners' Equity Capital Retained earnings Total owners' equity TOTAL LIAB.& OWNERS EQUITY 3,500 39,428 42,928 517,365 3,500 92,172 95,672 463,450 3,500 159,653 163,153 411,296 3,500 235,209 238,709 358,056 3,500 285,292 288,792 304,419 14,437 14,437 460,000 460,000 14,778 14,778 353,000 353,000 15,143 15,143 233,000 233,000 15,347 15,347 104,000 104,000 0 15,628 15,628

Stat. Of Retained Earnings Retained earnings at 1 January Net profit (loss) for the year Dividends Ending Retained Earnings

Year 1 39,428 39,428

Year 2 39,428 52,744 92,172

Year 3 92,172 67,481 159,653

Year 4 159,653 75,557 235,209

Year 5 235,209 83,471 33,388 285,292

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The shareholders loan will be gradually decreased from the cash flows generated from operations. The shareholders loan account will be fully reimbursed by year 5 and the company will distribute dividends starting year 5.

6.4

Projected Cash Flows

The following table shows the projected cash flows of the adventure park.

ADVENTURE PARK STATEMENT OF CASH FLOWS Net income Adjustments to reconcile net income to cash provided by operating activities Depreciation Changes in receivables Changes in payables Total Adjustments Cash provided by operating activities Cash Flow from Investing Activities Capital expenditures Investment in fixed assets Net cash used in investing activities Cash flow from financing activities Invested capital Change is shareholders' loan Dividends distributed Cash provided by financing activities Cash at beginning of year Changes in cash Cash at end of year

Year 1 39,428

Year 2 52,744

Year 3 67,481

Year 4 75,557

Year 5 83,471

54,917 (7,948) 14,437 61,406 100,833

54,917 (795) 341 54,463 107,207

54,917 (874) 365 54,407 121,888

53,750 (481) 204 53,473 129,030

53,750 (505) 281 53,526 136,996

(554,500) (554,500) 3,500 460,000 463,500 9,833 9,833

(107,000) (107,000) 9,833 207 10,040 -

(120,000) (120,000) 10,040 1,888 11,928

(129,000) (129,000) 11,928 30 11,958

(104,000) (33,388) (137,388) 11,958 (392) 11,566

The statement of cash flows shows the cash provided/used in operations, investing and financing activities. It shows the initial net investment in fixed assets of $554,500. This amount is financed by capital injection of $3,500 and shareholders loan of $551,000. This amount is decreased from the operating cash flows by the end of the year to reach a net of $460,000. The statement shows the reimbursement of the shareholders loan over the years. By year 5, the shareholders would have withdrawn the entire initial amount invested in this business and dividends will be distributed.

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6.5

Ratio analysis

The following table shows the main financial ratios for the park.

Ratio Analysis

Liquidity Ratios
Current Ratio

Year 1

Year 2

Year 3

Year 4

Year 5

Working capital Profitability Ratios Net Profit Margin Financial Strengh

Debt to equity ratio Management Effectiveness Return on Assets Return on Investment = ROI Return on Equity = ROE Asset Mnagement (Efficiency) Total Assets Turnover (sales/total assets)

1.23 3,344 20.7% 11.05 7.6% 8% 92% 0.37 92% 15 57.04

1.27 4,005 25.1% 3.84 11.4% 12% 55% 0.45 79% 15 52.40

1.42 6,402 29.2% 1.52 16.4% 17% 41% 0.56 60% 15 36.05

1.44 6,709 31.2% 0.50 21.1% 22% 32% 0.68 33% 15 36.13

1.42 6,541 32.8% 0.05 27.4% 30% 29% 0.84 5% 15 38.90

Total Debt to Total Assets Working capital cycle Days Receivables Working Capital Turnover=Sales/Working Capital

The current ratio, which is current assets divided by current liabilities increases slightly over the years as the current assets increase at a faster rate than current liabilities. Working capital, which is a measure of cash flow levels, is positive over the years, showing the companys ability to meet its short term liabilities. The net profit margin increases from 20.7% in year 1 to 32.8% in year 5, due to the increased revenues achieved over the years. The total debt to equity ratio decreases throughout the years as the company reimburses the shareholders dues. Return on assets increases gradually over the years with the improved profitability of the park. The return on investment improves also to reach 30% by year 5. The assets turnover, which is sales divided by total assets increases over the years with the growth in sales that is faster than the growth in assets. Total debt to assets declines over the years as the company reimburses its dues. The days of receivables are based on 2 weeks of sales.

IRR Payback Period

27% 4 years 8 months

The business provides an IRR of 27% and a payback period of 4 years 8 months.

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6.6

Break-even analysis

The following table shows the break even revenues required in each year to cover operating expenses. Revenues exceeding these levels start producing net income. Thus, in year 1, revenues of $139,015 are needed to break even.
ADVENTURE PARK

Break-even Analysis Total Revenues Total Variable Costs Total Fixed Costs Break-even Revenues

Year 1 190,760 19,758 124,617 139,015

Year 2 209,836 21,734 126,051 140,615

Year 3 230,820 23,907 127,523 142,257

Year 4 242,361 25,103 128,368 143,200

Year 5 254,479 26,358 129,920 144,932

6.7

Sensitivity analysis

A worst-case scenario is taken by assuming lower sales growth as shown below:

Camping for adult Camping for Hiking (2 Biking (1 Archery Ptanque Orienteerin (Bed & Breakfast) children (B&B) hours) hour) (1.5 hour) (2 hours) g (1 hour) 0% 0% 10% 10% 10% 10% 10% 15% 5% 20% 20% 20% 20% 20% 50% 70% 50% 50% 50% 50% 50% 70% 70% 50% 50% 50% 50% 50% 60% 70% 50% 50% 50% 50% 50% 30% 0% 40% 40% 40% 40% 40%

In % May June July August September October

In this case, the project will have an average profitability of $27,395 annually and an average net profit margin of 14.8%. This scenario provides an IRR of 17% and a payback period of 6 years 5 months.

A best-case scenario is developed considering higher sales growth as shown below:

In % May June July August September October Camping for adult Camping for children Hiking (2 Biking (1 Archery Ptanque Orienteerin (Bed & Breakfast) (B&B) hours) hour) (1.5 hour) (2 hours) g (1 hour) 15% 10% 25% 25% 25% 25% 25% 30% 20% 35% 35% 35% 35% 35% 65% 85% 65% 65% 65% 65% 65% 85% 85% 65% 65% 65% 65% 65% 75% 85% 65% 65% 65% 65% 65% 45% 15% 55% 55% 55% 55% 55%

In this case, the project will have an average profitability of $82,224 annually and an average net profit margin of 32.5%. This scenario provides an IRR of 31% and a payback period of 4 years 2 months.

Sensitivity Analysis
Profitability Average net income Average net profit margin Internal Rate of Return (IRR) Payback Period

Worst Case 27,395 14.8%

Most Likely 63,736 27.8%

Best Case 82,224 32.5% 31% 4 years 2 months

17% 27% 6 years 5 months 4 years 8 months

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7 Recommendations and key success factors

In order to achieve good results, the project needs to focus on the following key success factors: Developing a good marketing strategy including an informative brochure and attractive website. Focusing on hygiene on the camp site and on excellent service. Developing networking and public relations efforts to attract the largest number of nature lovers and summer campers.

8 Economic Impact Evaluation

The adventure park is expected to positively reshape the economic and social environment of Akkar. It will offer 14 job opportunities for Akkar residents. Moreover, the project will respond to a growing demand for adventurous activities in the mountains of Lebanon.

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