| Project Scope:
The State of Hawaii, Department of
Land and Natural Resources, was considering the development of
an 18-hole municipal golf course as part of its proposed
875-acre expansion of the Hapuna Beach State Recreation Area.
The Department of Land and Natural Resources required an
economic analysis for the overall park expansion project to
determine the value of the project to the West Hawaii economy.
The Department also wanted to investigate the feasibility of a
private concessionaire assuming responsibility for the operation
and maintenance of the golf course. A related question to the
feasibility of a private concessionaire operation was to
identify the operational assumptions that must be made to make
the cost for a round of golf marketable to resident players.
A market analysis was made of
various coastal recreational opportunities in West Hawaii.
Potential market share was calculated for several outdoor
recreation activities, including golf, and segregated for both
weekend and weekday participation by both residents and
visitors.
A five-year pro forma projection
was made for private operation of the golf course. The pro
forma identified detailed revenue and cost assumptions for green
fees, cart rentals, a driving range, pro shop supplies, as well
as food and beverage. In addition, specific requirements and
costs for golf course management and golf course maintenance
were also determined.
A net-present value analyses was
used for the economic analysis of the overall park expansion.
Project development and operation and maintenance costs were
developed for overall park maintenance. Assumptions were made
to determine user expenditures within the West Hawaii economy. |
