Negotiating ROI (Return on Investment) for ROI (Return on Impact) A Pre-Feasibility Study of Socio-Eco Resort Development in Eastern Indonesia

The thesis delves into the intriguing possibility of developing a nature-based resort in the pristine Raja Ampat region of Eastern Indonesia that simultaneously maximizes Return on Investment (ROI) and Return on Impact (ROI*). With the tourism industry in Raja Ampat growing at an impressive rate of 310% in just five years before the pandemic hit, the potential for a successful socio-eco resort is undeniable. However, the study recognizes the need to consider the growing demand for environmentally sustainable travel and the desire of travelers to positively impact the local economy. The research aims to determine the best partnership structure and agreement for the general partner (GP), limited partner (LP), and hotel management to achieve the desired alignment between ROI and ROI*. This requires analyzing the level of sacrifice necessary for impact and how to measure the impact on various stakeholders, including investors, community leaders, local communities, hotel management firms, and potential customers. Additionally, the thesis explores the metrics to use when measuring impact for each stakeholder and ultimately aims to align the interests of all parties involved. The study recognizes the critical need to create a socio-eco nature-based resort that not only delivers financial returns but also generates social and environmental benefits. The research provides a unique perspective on the importance of local economic growth in a less developed area in Indonesia. Ultimately, the thesis aims to identify a partnership structure that ensures the success of the proposed resort while creating a positive impact on the local economy and environment.

Name thesis:degree_name

Master

Department dc:contributor.department

Massachusetts Institute of Technology. Center for Real Estate. Program in Real Estate Development.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2024

Author dc:creator

• Christopher

Advisor dc:contributor.advisor

• Saiz, Albert

Statement dc:rights

• In Copyright - Educational Use Permitted
• Copyright retained by author(s)

Licence dc:rights.uri

• https://rightsstatements.org/page/InC-EDU/1.0/

Handle dc:identifier.uri

https://hdl.handle.net/1721.1/153710

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/153710