Abstract

Swiftlet hotels have become increasingly popular in the real estate industry today due to its high return on investment (ROI). This research has proven that a standard 20 x 70 feet shop is able to generate a net income of approximately RM10,000 to RM20,000 per month from sales of 2 to 4 kg bird nests. In about 15 months, a three storey shop house with a base value of RM360, 000 could appreciate up to RM750, 000 in market value after being converted into a swiftlet hotel. These prospects have attracted investors to invest in higher and taller birds’ hotel in order to generate more bird nests hence higher income. This paper highlighted the risks and opportunities in swiftlet farming as a business investment and arranged them in a well structured perspective for the benefits of potential investors. Questionnaire survey and structured interviews were used as the research methodology. Findings revealed that although swiftlet farming has high risks, most investors receive a return on investment (ROI) from 25 - 35% per annum, some having up to 46% per annum. The only risks found in swiftlet farm business are possibility of theft and mosquito breeding. Other findings revealed that swiftlet farmers experience difficulty with the guidelines of swiftlet farming. The research concluded that the return on investment in Swiftlet Farming compensates the risks attached to it.