LEISURE DEVELOPMENT PARTNERS
Feasibility & the Development Process
In this article, LDP, global market leader in leisure economics for visitor attractions, entertainment and culture real estate, outline how intrinsic feasibility is to the development process and how it impacts all the key steps to delivering successful experience economy projects.
Since 2010, LDP has completed over 1,000 feasibility studies across six continents. There is often significant lead time between feasibility and implementation of projects but also a reasonable number of projects will never be constructed. Projects not being delivered is rarely a result of feasibility. Feasibility studies are essential for determining the viability of projects, but their role is not simply to approve or reject a project, but to assist operators, developers, or investors in identifying optimal development solutions. Indeed, nearly every project we undertake produces a solid business case, often after we have tweaked and optimised the initial vision to improve viability. The main reason for many projects not being developed is because they get caught up at various other points during the delivery process or that that process was not initially well understood. In this editorial we highlight how feasibility can positively influence the development process and a little of what to expect when embarking on developing a visitor experience.
• Site Selection. Whether comparing existing sites or identifying potential new sites, feasibility should be an integral part of the site selection process. Viability of most attractions is driven by visitation, and this will be reliant on a number of variables such as the relative strengths and weaknesses of different sites, the size and profile of the available resident and tourist markets, and the competitive environment landscape, all of which are integral parts of the feasibility process. Choosing the wrong site could have a major detrimental effect on viability.
• Viability & Funding. The core to feasibility is whether a project is financially viable. Feasibility will forecast annual attendance, revenues from different sources( e. g. admissions, retail, food & beverage, up-charge activities, events, photos, parking, sponsorship), operating costs( e. g. staff, marketing, repairs & maintenance, utilities, insurance), profitability, and ultimately return on investment( ROI). Good feasibility is bankable and will
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