financial feasibility study of investment project on the construction of air ticket check building outside passenger terminal at phuket internatinal airport

Abstract

Financial Feasibility Study of Investment Project on the Construction of Air Ticket Check Building outside Passenger Terminal at Phuket International Airport is purposely aimed at 3 objectives which are (1) to study general condition of Phuket International Airport and tourism condition of Phuket Province, (2) to assess the operational cost and benefits to be derived from the Air Ticket Check Building construction outside Passenger Terminal at Phuket International Airport and (3) to measure the financial worthiness of the Investment Project on the Construction of Air Ticket Check Building outside Passenger Terminal at Phuket International Airport by designating the Project life of 20 years using the discount rate at 10%. Data used for this study are secondary data gathered from various sources of data: such as statistics reports, articles, journals research papers and other printed matters both of public and private sectors. It is found, as a result of the study, that the Project is financially worthwhile for investment with the payback period of 5 years, 5 months and 26 days and the average rate of return (ARR) at 154.61%; the benefit-cost ratio (B/C Ratio) equal to 1.20%; net present value (NPV) of 79,188,133.00 Baht; the internal rate of returns
(IRR) equal to 17.11%. As a result of the Project Sensivity Analysis in 3 various cases: i. e. the case where the benefit is steady and the cost has increased at the rate of 10%, the case where the benefit has decreased at the rate of 10% and the cost is steady and the case where the benefit has decreased and the cost has increased at the rate of 10% simultaneously, it is found that the project is still suitable in all cases. This study has a recommendation for the investors that they ought to give the importance on the aspect of the quality and standard in providing services to the customers in order to create the maximum satisfactions in them which will positively result in the operations to attain the optimum goal on the aspect of the revenues and profits as planed and that Phuket International Airport public relations should be additionally launched in order to make foreign airliners know more about the Airport which will be the opportunity to look for new customers to use the services.