Decomposing the Uluwehi Secret Falls Trail Boardwalk Project
My recent visit to the breathtaking island of Kauai included an exciting adventure—the Sacred Falls Adventure - Wailea River Kayak, Hike & Waterfall Swim. This experience exposed me to the natural beauty of the Uluwehi Secret Falls Trail near Kapa ‘a, Hawaii. During my journey, I stumbled upon a remarkable project as described to me by our trip guide - the construction of a .75-mile boardwalk on this muddy trail. This undertaking was aimed at enhancing safety and accessibility for hikers, all while ensuring a return on investment for the companies behind this endeavor. What amazed me most was that the trail was inaccessible by motorized vehicles, meaning all material needed to be brought in manually. At that moment, it became clear to me that this had to be an essential project, given the cost, labor, and time involved. Unfortunately, there was not much information on this effort, either from our tour guide or my Google research.
Considering this information, I needed to know more about this, including the why and potential return on investment. So, I explored the project's focus on safety and the considerations of ROI for the companies involved by reverse engineering what this project “would have” looked like from inception to completion. So, this is my attempt at considering what the project planning might have looked like. I wanted to know the situation and see how close I might be to the actuals. Either way, it was fun to consider the unknowns and provide a project plan for something so fun as this initiative.
Safety First: Assessing the Need
I asked the tour guide what she believed was the primary driving force behind the Uluwehi Secret Falls Trail project, and she stated it was to improve safety. The trail, especially during rainy conditions, had become hazardous, causing accidents and injuries. Understanding the safety aspect of this project was crucial for the tour companies spearheading it. By enhancing safety, they aimed to reduce risks and potential liabilities associated with accidents on the trail.
ROI Perspective: Stakeholder Perspective
While ensuring safety was paramount, the tour companies running this project recognized the importance of realizing a return on investment. Engaging stakeholders, such as government authorities, environmental organizations, and adventure companies, was vital. By involving these parties, the companies aimed to garner support and address concerns while optimizing their investment.
Environmental Impact Assessment and ROI
Preserving Kauai's pristine environment was assumed as a top priority for the companies involved. An extensive environmental impact assessment was likely conducted to ensure the project aligned with ecological conservation goals. From an ROI perspective, this approach also aimed to minimize potential fines or legal issues related to environmental damage, safeguarding their investment.
Reverse Engineering the Design with ROI in Mind
Reverse engineering the project design involved working backward from the observed boardwalk to determine materials, resources, and construction techniques. The assumption is that engineers and architects played pivotal roles, keeping safety and ROI in mind. The choice of materials, for instance, needed to balance cost-effectiveness with durability and environmental sustainability. Attached is an assumed plan based on my research for boardwalk construction projects like the one developed on this trail. I’m including estimated labor as well as expected materials.
Project Schedule, including WBS (Projected)
Securing Funding and ROI Calculations
Securing funding for this project could have provided some challenges, as it was not inexpensive nor guaranteed to provide an ROI. The companies likely tapped into various sources, including government grants, private donations, and fundraising campaigns. Their ROI should have calculations factored in not only the construction costs but also the potential financial benefits:
Increased Tourism: A safer and more accessible trail attracts more tourists. This translates to increased revenue for adventure companies, local businesses, and tourism.
Brand Reputation: Investing in safety and environmental conservation can enhance the companies' brand reputation, potentially leading to higher customer loyalty and increased business.
Risk Reduction: By reducing the number of accidents and injuries on the trail, the companies lower their exposure to potential legal and healthcare costs, contributing positively to their ROI.
Sustainability: Incorporating eco-friendly practices into the project aligns with the growing demand for sustainable tourism, potentially attracting environmentally conscious travelers and increasing profitability.
Budget Considerations - Material
Grand Total Material Cost:
· Decking Boards: $154,440
· Stringer Boards: $32,670
· Support Posts: $17,820
· Fasteners and Hardware: $2,376
· Signage: $750
· Protective Coatings: $29,760
Grand Total (Material) = $237,816
Budget Considerations – Labor
Assumptions for Schedule Calculation:
· Total Man-Hours Required: 10,000 hours.
· Workweek: 40 hours per week.
Calculation with 6 Workers:
· Total Available Work Hours per Week: 6 workers × 40 hours/week = 240 hours/week.
· Total Weeks Required: 10,000 total man-hours ÷ 240 hours/week ≈ 41.67 weeks.
The project is estimated to take approximately 42 weeks, assuming consistent productivity.
Grand Total (Labor) = $378,000
Grand Total (Labor and Material) = $615,816
Community Involvement and Long-Term ROI
I’m not sure this was taken into account, but engaging the local community would demonstrate corporate responsibility and foster a sense of ownership and pride. From an ROI perspective, this community involvement can lead to long-term benefits, including positive relationships with the local population, potential cost savings, and support for future projects.
Let’s now consider the return on investment of the boardwalk project. We can use multiple methods for calculating decisions for project investment, such as ROI or IRR, but we will use ROI and Payback Period in this circumstance.
Benefit Calculations (ROI)
Calculating Additional Revenue:
Revenue from Additional Tours:
· Daily Revenue per Tour: $120 per hiker × 12 hikers = $1,440
· Additional Daily Revenue (second tour): $1,440
· Weekly Additional Revenue: $1,440 × 2 tours per day × 7 days = $20,160
· Annual Additional Revenue: Assuming tours are held year-round, $20,160 × 52 weeks = $1,048,320
Calculating Investment Cost:
Initial Project Cost:
· Material Cost: $237,816 (from a previous calculation)
· Labor Cost: $378,000 (from a previous calculation)
· Total Initial Investment: $237,816 + $378,000 = $615,816
Calculating Return on Investment (ROI):
ROI is calculated using the formula:
ROI=((AnnualAdditionalRevenue−TotalInvestment)/TotalInvestment)×100
Applying the formula:
ROI = {$1,048,320 - $615,816}/{$615,816} times 100
Let's calculate the ROI percentage.
The boardwalk project's Return on Investment (ROI) is approximately 70.23%.
This means that for every dollar invested in the project, there is a return of about 70 cents over a year. The positive ROI indicates that the project is financially beneficial, with significant additional revenue generated from the ability to conduct a second tour hike per day.
Calculating Payback Period:
The payback period is calculated using the formula:
PaybackPeriod = Total Investment / Annual Additional Revenue
Applying the formula:
PP = $615,816 / $1,048,320
PP = 0.59 years or roughly seven months
This means the project will take about seven months to recoup its initial investment through the additional revenue generated by conducting a daily tour hike.
Conclusion: A Safe and Profitable Endeavor
The construction of the .75-mile boardwalk on the Uluwehi Secret Falls Trail in Kauai, Hawaii, exemplifies the delicate balance between safety and return on investment. Based on the projected investment, I will assume that the tour companies behind this project embarked on a journey that considered the safety of hikers while strategically planning for financial benefits. By assessing safety needs, engaging stakeholders, conducting environmental impact assessments, and calculating ROI from various angles, they created a win-win situation: a safer trail that promises long-term financial returns. This project serves as an example of how intelligent project management can lead to both enhanced safety and business success in the enchanting landscapes of Kauai.