Journal of the Korean Society of Marine Environment & Safety (해양환경안전학회지)

The Korean Society of Marine Environment and safety (해양환경안전학회)
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A Study on the Business Feasibility of Marine Leisure Ship

  • Jung-Suk Choi (Division of Maritime Transportation, Mokpo National Maritime University) ;
  • Kyoung-Hoon Choi (Division of Maritime Transportation, Mokpo National Maritime University)
  • Received : 2023.04.20
  • Accepted : 2023.05.29
  • Published : 2023.05.31
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Abstract

The purpose of this study is to evaluate the feasibility of the new marine leisure ships. In order to achieve the research purpose, the cost and income were calculated based on the operating of other marine leisure ships, and the feasibility of the project was empirically analyzed. This study established a research model that applies the values derived by empirically analyzing ships with similar specifications, to the new marine leisure ships. We then calculated the cost-benefit analysis, net present value, and internal return, and evaluated the feasibility of the project based on this. As a result of the business feasibility analysis of investing in marine leisure ship, it was found that economic feasibility exists with a B/C of 1.042 and 1.049 for new and secondhand ships, respectively; however, considering the stability of the ship and the publicity and continuity of the business operation, it is recommended to invest in new ships compared to secondhand ships. The total benefit over the 10-year operating period using a social discount rate of 4.5% was evaluated to be about KRW 292.0 billion, which is higher than the total cost of KRW 256.6 billion. In conclusion, the profitability analysis showed that the B/C was 1.042, the NPV was KRW 193 billion, and the IRR was 2.1%, which indicates that profitability is weakly secured.

Keywords

Acknowledgement

This work was supported by the Ministry of Education of the Republic of Korea and the National Research Foundation of Korea (NRF-2020S1A5A8042768).

References

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