The Challenge
2018, Salta (Argentina)
The client owns an estate of 5,000 hectares bordering Los Cardones National Park, which includes a set of buildings as well as agricultural activity and livestock.
The estate of El Candado is found in a zone teeming with unique tourist attractions, including caves with rock paintings, prehistoric ruins, the opportunity to see condor birds, and a variety of beautiful landscapes during the entire year.
The proprietaries of the El Candado Estate wanted to evaluate the feasibility of tourist lodging compatible with its current activity. For this reason, they hired The Innova Room.
How We Did It
Premises of the Project
- Maintain the livestock component of the business plan
- Incorporate a hotel partner who could develop the lodging from inside the property
- Develop the land in part, incorporating investors and buyers of smaller plots within the estate
The Innova Room proposed a preliminary analysis of the viability, with the objective being to provide key information needed for decision making while only using a limited amount of resources. The plan:
- Visit the countryside, as well as the town of Cachi (nearest tourist site)
- Analyze and process the collected information
- Present the conclusion and next steps
Below are the conclusions and key take aways from the project.
A) Appeal and Potential
The estate is located in a zone with touristic potential, with the possibility for tourists to stay in a unique natural environment with a variety of available activities. Additionally, the estate could adapt (from the beginning) an eco-friendly strategy and place an emphasis on responsible usage of natural resources and energy, which could differentiate the product from others in the area.
On the other hand, the suggested business model for the development of the project has the potential to include real-estate investors, who may be interested in the revenue from the influx of tourists to the property. In other words, the tourism would diversify the source of income to the estate.
B) Infrastructure
Despite the appeal detailed in Point A, the current infrastructure makes it difficult to establish complementary businesses. In particular, the estate should invest in improving access to the property, the generation of energy, and digital communications.
C) Future Lines of Business
The following opportunities for business have been identified: livestock and agriculture, real-estate, tourist lodging (and culinary offerings), and experiences (touristic, athletic, and cultural). The development of these areas would be carried out progressively, first establishing an individualized financial and commercialization strategy for each one.
Results
The proprietaries continue to develop the agriculture/livestock sector and progressively begin to invest in the necessary infrastructure for the other potential lines of business. Once access to the property has been consolidated, the next phase of the project will be considered.
Image Sources: The Innova Room (during visit to the estate), BirdSimply, Argentina Me Atrapa and Centro Cultural Argentino de Montaña.
