Financial Feasibility Of Royal Honey Sakah Bee Agrotourism

Abstract

BACKGROUND AND OBJECTIVES:

Royal Honey Sakah Bee Agrotourism is a beekeeping business established to educate the public about honeybee culture and increase the honey sales profits. However, over time the owner faced challenges in stabilizing honey production to meet sales demand. Therefore, a financial feasibility analysis is necessary to evaluate the viability of the investments made. This study aims to assess the feasibility and sensitivity of Royal Honey Sakah Bee Agrotourism.

METHODS:

Primary data were collected through interviews with key informants, while secondary data were obtained from relevant sources. Financial feasibility was evaluated using NPV, IRR, Net B/C Ratio, and Payback Period. Sensitivity analysis was conducted under three main assumptions, such as inflation rate, sales decline, and interest rate increase.

FINDINGS:

Royal Honey Sakah Bee Agrotourism is financially feasible with an NPV of IDR166,134,926; IRR of 21.61%; Net B/C Ratio of 1.09; and a Payback Period of 3 years and 9 months. The business remains feasible under 1.57% inflation and an interest rate increase from 7.5% to 12%. However, a 10% decline in sales would render it unfeasible and potentially result in future losses.

CONCLUSION:

Royal Honey Sakah Bee Agrotourism must maintain the quality of its honey, as well as the services and educational experiences it offers. It should also consider increasing the number of bee colonies and improving their care, alongside enhancing its promotion and marketing strategies. Through these efforts, it is expected that Royal Honey Sakah Bee Agrotourism can grow sustainably and avoid potential losses in the future.