Bumi Shanti Yatra: a sustainable green cottage and wellness retreat in Banyuwangi

The global tourism industry has experienced a gradual shift toward wellness-oriented and sustainability-focused travel, creating opportunities for destinations to move beyond conventional mass tourism models. In Indonesia, this shift is reinforced by national and regional tourism policies that emphasize environmental responsibility, community participation, and experience-based tourism development. Within this context, Banyuwangi, East Java, has gained recognition as an emerging destination due to its natural resources, improving accessibility, and designation as a pilot area for sustainable tourism initiatives. This study examines the business feasibility of establishing Bumi Shanti Yatra, a boutique eco-wellness retreat that integrates sustainable hospitality practices, wellness tourism, and local community engagement within a forest-based setting in Banyuwangi.The study adopts a business feasibility and planning approach supported by qualitative market analysis and secondary tourism data. Primary insights are obtained through in-depth interviews, while secondary sources provide information on tourism performance, wellness tourism trends, and sustainability frameworks. Strategic tools are applied to evaluate market positioning, operational design, and value creation, followed by a financial feasibility assessment using Net Present Value (NPV), Internal Rate of Return (IRR), payback period, and scenario analysis. The proposed business model emphasizes low-density development, environmentally conscious design, holistic wellness programs, and collaboration with local stakeholders to deliver authentic guest experiences.The financial evaluation indicates that the project is economically viable under the base-case scenario. Using a Weighted Average Cost of Capital (WACC) of 10.74 percent, the analysis shows a positive Net Present Value and an Internal Rate of Return of 17.8 percent, exceeding the required rate of return. The discounted payback period is approximately 3.8 years, suggesting a reasonable recovery period for the initial investment. Scenario analysis further demonstrates the project’s resilience under conservative assumptions and its potential for stronger performance under favorable market conditions.Overall, the findings suggest that Bumi Shanti Yatra represents a financially feasible and strategically appropriate investment that aligns with evolving wellness tourism demand and sustainable development objectives. The project contributes a practical model for small-scale eco-wellness retreats in emerging destinations, supporting long-term destination competitiveness, local economic development, and environmentally responsible tourism growth in Banyuwangi.