APPROVAL SHEET

In partial fulfillment of the requirements for the degree of Bachelor of Science in

Industrial Engineering, this feasibility study entitled “A FEASIBILITY STUDY IN

INTRODUCTION OF SEA THROUGH KAYAKING IN CALATAGAN, BATANGAS” submitted

by JENIE AIRA P. CLEMENO, MAYANN KATE F. FONTARUM and LYELL JANE G. LALAP is

hereby accepted.

________________________________________

DR. ANGELITA M. PAGCALIWAGAN

Adviser

Approved by the panel on Oral Examination with a grade of _______

______________________________________

ENGR. RM JHIELL LHEY Q. AGUADO

Chairman

_______________________________ ___________________________

ENGR. AILEEN F. ARAGUAS ENGR. JERSON A. CULLA

Member Member

Accepted as partial fulfillment of the requirements for the degree of BACHELOR OF

SCIENCE IN INDUSTRIAL ENGINEERING

____________________ _____________________________

Dr. Reynato Gamboa

Dean, COE
 Acknowledgement

The proponents would like to acknowledge and give their warmest gratitude who helped them in

finishing and helping this study possible. They would like to express their sincerest appreciation for

the completion of this study.

To Batangas State University, for delivering high-quality instruction, power, wisdom, and

helping out the proponents to increase their knowledge, productivity, and motivation in completing

this study,

To their feasibility study adviser, Dr. Angelita M. Pagcaliwagan for sharing her knowledge,

expertise, experience, unending support, understanding and encouragement for the proponents,

To Engr. RM Jhiell Lhey Q. Aguado as their chairman and to other panel members Engr. Aileen F.

Araguas and Engr. Jerson A. Culla, for their patience, understanding and helpful comments and

suggestions that helped the proponents improve their study,

To the respondents, for answering the survey questionnaire whole-heartedly and honestly,

To their beloved parents- Mr. and Mrs. Clemeno, Mr. and Mrs. Fontarum, and Mr. and

Mrs. Lalap for their never-ending support, motivation, concern, and non-stop assistance

morally and financially;

And most of all, to Almighty God, for the strength, knowledge, wisdom, perseverance,

life, and knowledge and directed the proponents to make this research study possible.
 Dedication

We, the researchers dedicated this study with all respect and gratitude to the following for helping us

making this study possible:

To Almighty God, thank you for the everything, it is all from you and for you,

To our families, thank you for supporting us emotionally, morally, spiritually and financially,

To our classmates, friends who shared words of advices

And to our adviser, panel of the committee and the whole BS Industrial Engineering Department for

their unwavering support and help and understanding throughout this study

Jenie

Mayann

Lyell
 EXECUTIVE SUMMARY

Title: A Feasibility Study on the Introduction of Sea Through Kayaking in Calatagan, Batangas

Authors: Clemeno. Jenie Aira P.

Fontarum, Mayann Kate F.

Lalap, Lyell Jane G.

Degree: Bachelor of Science in Industrial Engineering

Year: 2022

Adviser: Dr. Angelita M. Pagcaliwagan

Calatagan Batangas is a place in the south that is one of the most visited vacation destinations.

This municipality has enjoyed its growth in tourism for the past years, and has continually made

improvements to further increase its tourism. Both the local government unit and private entity resorts

offer additional amenities and activities to expand customer and tourist engagement. Most of these,

added up different water activities and showed up evidence of increase in tourism.

The feasibility study entitled “A Feasibility Study on the Introduction of Sea Through

Kayaking in Calatagan, Batangas” intended to see the viability of introducing sea through kayaking in

Calatagan, Batangas. This is through a partnership venture with private resorts and floating cottages,

Aquaria Water Park, Kuya Indo Campsite, Camp Wagi, Kuya Unage’s floating cottage, Carolina’s

floating cottage, and Milky’s floating cottage. The proponents took into consideration the feasibility

factors of the market study, technical study, financial study, socioeconomic study, and organizational

and management study. The proponents evaluated the business venture's results using these criteria

over the course of its first ten years of operation.

years of operation, socioeconomic study, and organizational and management study were all taken

into account. The marketing component of KAJ Sea Through Kayaking was taken into account when

determining the market viability of the company. This included factors like market description,

demand and supply analysis, and marketing program. The proponents' survey had an available and the

possibility to establish the planned firm. Tourists to Calatagan, Batangas, are the company's primary

market. The survey's findings on people's propensity to use kayaks to access the sea indicated an

annual increase in potential customers. Among the 395 respondents from the tourists. The results of

the survey showed that 343 among 395 respondents (86.80%) are willing to avail the service offered,

while 52 (13.20%) will not because of the fear of drowning and the idea that will be too costly. As

seen with the results, KAJ Sea Through Kayaking will be patronized by the targeted consumers and is

market feasible. From the data gathered, proponents could get the projected demand and supply from

ten years to assure that the proposed business has its potential market.

The technical study, on the other hand, covered the elements necessary to launch a business,

such as the business's strategic location, the process and service schedule, various costs, and the

money required to fund the venture. The discussion included sections on the equipment, personnel,

location, and technology that would be required to set up the business.

The objective of the financial feasibility study was to assess the viability of KAJ Sea Through

Kayaking from a financial perspective. Taking into account the process of assessing the company,

projects, budgets, and other financial-related entities to establish the performance and acceptability of

the business. According to KAJ Sea Through Kayaking's financial analysis, the business is viable and

will turn a profit during the first ten years of operation.

Another important component of the feasibility study project is the socio-economic research

of Static, which relates to the business's economic analysis. The proposed enterprise will boost

tourism in Calatagan, Batangas, and generate extra revenue in the form of taxes and VAT.

Additionally, by employing people and offering job chances through various advertising and
promotions, the company will benefit the community. Benefits for employees were also taken into

account in the interest of providing superior service.

The organizational and management feasibility examined the operation of the company.

Considering that a board of directors is a necessary component for any firm to succeed. By setting up

each individual assignment required, KAJ Sea Through Kayaking services would achieve and realize

successful management. The skills and traits of the employees were also necessary for corporate

functioning. Putting people in groups according to their aptitude for carrying out duties that were

necessary and crucial to the success of the proposed business.

KAJ Sea Through Kayaking, which is planned to be built in Calatagan, Batangas, is projected to be

practical given all the suggested criteria and a thorough analysis, meaning that opening the business is

likely to be feasible.
 TABLE OF CONTENTS
TITLE PAGE i
APPROVAL SHEET ii
ACKNOWLEDGEMENT iii
DEDICATION iv
EXECUTIVE SUMMARY v
TABLE OF CONTENTS viii
LIST OF FIGURES xii
LIST OF TABLES xv
I. CHAPTER
I. PROJECT SUMMARY
Name of the Business 1
Location of the Business 1
Descriptive Definition of the Project 2
Project’s Long-Range Objectives 2
Feasibility Criteria 3
Highlights of the Study
History 4
Project Time Table and Status 4
Nature of the Business 6
Mode of Financing 7
Investment Cost 7
Major Assumptions and Summary of Findings and Conclusions
Market Feasibility 7
Technical Feasibility 8
Financial Feasibility 9
Socio-Economic Feasibility 9
Organization and Management Feasibility 10
II. MARKET STUDY
Nature of the Business
Name of the Service 11
Description of the Service 12
Uses of the Service 14
Major Users of the Service 14
Geographical Area of the Business 15
Analysis of the Market 17
Demand 18
Historical Demand 19
Projected Demand 21
Supply 23
Demand-Supply Analysis 24
Market Share Analysis 24
Price Study 25
Marketing Program 26
III. TECHNICAL FEASIBILITY
The Service 29
Service Process 29
Service Schedule 32
Sea Through Kayak Equipment 36
Safety Equipment 37
Office Equipment 38
Office Furniture and Fixtures 39
Vehicle Cost 40
Facility Location 40
Facility Layout 43
Building and Facilities 45
Rent Expense 46
Renovation Cost 47
Glass and Aluminum Storage Cost 49
Kayak and Paddle Storage Cost 50
Consumable Office Supplies Expense 51
Non-consumable Office Supplies Expense 51
Consumable Miscellaneous Supplies Expense 52
Non -consumable Miscellaneous Supplies Expense 52
Diesel Expense 53
Medical Supplies Expense 53
Utility Cost 54
Advertisement 55
Waste Disposal 55
Labor Requirements 56
Cost of Annual Labor Requirements 56
Annual Employer’s Contribution to Fringe Benefits of Employees 56
Permit and Licenses 58
Investment Cost 59
IV. FINANCIAL STUDY
Project Cost 62
Source of Funds 64
Basic Financial Projections 65
Financial Statement 67
Projected Income Statement 69
Projected Cash Flows 71
Projected Balance Sheet
73
Financial Viability Criteria 75
Financial Ratio 75
Liquidity Ratio 75
Current Ratio 75
Profitability Ratio 77
Net Profit Margin 78
Return on Assets 79
Return on Equity 81
Risk Ratio 83
Net Present Value 84
Financial Internal Rate of Return 85
Payback Period 86
Accumulated Method 86
Simple Payback Method 87
Interpolation Method 88
Financial Analysis 89
V. SOCIO-ECONOMIC BENEFITS
Economic Benefits 90
Direct Benefits of the Business 90
Benefits as a Result of the Business 91
Economic Cost 93
Fixed cost 93
Working Capital 94
Evaluation of Financial Benefits and Cost 96
VI. ORGANIZATION AND MANAGEMENT STRUCTURE
Political and Legal Considerations 98
Project Organizational and Management 103
Form of Business Ownership 103
Organizational Structure 104
Manpower Requirement 106
BIBLIOGRAPHY
APPENDICES
A. Computation
B. Communication Letter
C. Certificate of Apperance
D. Curriculum Vitae