Eco-Tourism Revenue Model
Updated: December 19, 2025
Version: 4.0
Author: Secret Trees Core
Overview
Eco-tourism is one of the 4 revenue streams per property in the Secret Trees model. Cottage rental provides the most predictable income and serves as collateral for revenue-backed financing.
Latvia Market Analysis
Pricing Structure
| Season | Rate | Period |
|---|---|---|
| Low Season | €80-100/night | Nov-Mar |
| High Season | €120-150/night | Jun-Aug |
| Shoulder Season | €100-120/night | Apr-May, Sep-Oct |
| Average | €100/night | Year-round |
Occupancy Projections
| Year | Occupancy | Nights | Revenue |
|---|---|---|---|
| Year 1 | 30% | 110 | €11,000 |
| Year 2 | 50% | 183 | €18,300 |
| Year 3+ | 60-70% | 219-256 | €21,900-35,000 |
Revenue per Cottage (Mature)
- Conservative (50% occupancy): €22,000/year
- Optimistic (70% occupancy): €35,000/year
- Average: €28,500/year
Cost Structure
| Category | % of Revenue | Annual Cost |
|---|---|---|
| Operational | 40-50% | €8,800-14,000 |
| Maintenance | 10-15% | €2,200-3,500 |
| Marketing | 5-10% | €1,100-2,200 |
| Platform Commission | 10% | €2,200-3,500 |
| Total Costs | 65-85% | €14,300-23,200 |
Net Profit per Cottage
- Year 1: €3,300-5,500 (30% occupancy)
- Year 2: €5,500-9,200 (50% occupancy)
- Year 3+: €6,600-12,100 (60-70% occupancy)
Role in GreenPact Model
Property Owner Income Model
In the GreenPact Protocol, property owners provide land only (no cash investment). They manage their own bookings and receive:
| Income Stream | Amount |
|---|---|
| Fixed Rent | €3,000-5,000/year |
| Profit Share (20%) | €4,000-5,000/year |
| Total Income | €7,000-10,000/year |
| Investment Required | €0 (land only) |
Why Property Owners Line Up: Passive income with zero risk - they provide land only.
Platform Economics
| Metric | Value |
|---|---|
| Cottage Cost | €84,000 |
| Secret Trees Funds | €84,000 (100%) |
| Construction Company | €0 (contractor - paid for work) |
| Rental Revenue | €22,000-35,000/year |
| Platform Share (80%) | €17,600-28,000/year |
| Property Owner Share (20%) | €4,400-7,000/year |
Why This Works: Secret Trees funds 100% of construction and takes 80% of rental profits + all CCT revenue + hemp by-products. Construction companies are just contractors (paid normally). 20% returns achievable at 25-50 cottage scale.
Competitive Advantages
vs Traditional Vacation Rentals
- ✅ Unique Experience: Hemp cottage, carbon-negative stay
- ✅ Story Value: Guests contribute to carbon sequestration
- ✅ Premium Pricing: 10-20% above comparable properties
- ✅ Repeat Visitors: Eco-conscious travellers return
vs Hotel Stays
- ✅ Privacy: Standalone cottage experience
- ✅ Nature: Rural Latvia setting
- ✅ Authenticity: Real hemp construction
- ✅ Sustainability: Verified carbon-negative
Marketing Strategy
Target Audiences
- Eco-Tourists: Sustainability-focused travellers
- Digital Nomads: Remote workers seeking unique stays
- Wellness Seekers: Health-conscious visitors
- Corporate Retreats: Team-building in nature
- Carbon-Conscious Families: Educational experiences
Channels
- Airbnb/Booking.com: Primary booking platforms
- Direct Website: Higher margins, repeat visitors
- Corporate Partnerships: B2B retreat bookings
- Influencer Marketing: Eco-tourism content creators
Scaling to 100 Cottages
Platform Revenue from Eco-Tourism
| Cottages | Annual Rental Revenue | Platform Commission (10%) |
|---|---|---|
| 2 | €70,000 | €7,000 |
| 5 | €175,000 | €17,500 |
| 15 | €525,000 | €52,500 |
| 40 | €1,400,000 | €140,000 |
| 100 | €3,500,000 | €350,000 |
At 100 Cottages: €350K/year in platform commission from eco-tourism alone.
Risk Mitigation
Occupancy Risk
- Mitigation: Conservative projections (30-50% Year 1-2)
- Backup: CCT + hemp products provide baseline revenue
Seasonal Risk
- Mitigation: Year-round marketing, corporate retreats
- Backup: Off-season rates attract budget travellers
Competition Risk
- Mitigation: Unique hemp cottage experience
- Backup: Carbon-negative certification differentiates
Next Steps
- Business Model - Complete revenue model
- Financial Projections - 5-year forecasts
- Growth Model - Scaling strategy
- Investment Memo - Executive summary
Last Updated: December 20, 2025
Version: 4.1
Author: Secret Trees Core