In recent years, the establishment of recreational and tourism centers, as one of the service sectors of the economy, has experienced significant growth, as it not only generates income but also creates substantial employment opportunities. The construction of such centers near water bodies leads to attractive landscapes and increased customer satisfaction. Dams and barrages, due to the presence of these scenic views, are suitable locations for the development of tourism-related services. In water-scarce and eastern provinces of the country, limited access to water resources makes such landscapes have even greater potential compared to other regions. The aim of the present study is to assess the economic and financial feasibility of establishing a recreational and tourism center adjacent to Farrokhi Dam, located in Qaen County, South Khorasan Province. To this end, in the market studies, on the demand side, the number of potential visitors was estimated using the gravity index, while the supply side was analyzed through questionnaires completed by dam visitors in the spring of 1404 (2025). Based on these analyses, final project proposals were presented.The financial and economic evaluation of the proposed projects indicates that investment in the vicinity of the dam, with a fixed investment of 146,879 million rials over a one-year construction period and working capital of 21,308 million rials, would yield an internal rate of return (IRR) of 84%, assuming a useful life of fifteen years. The expected net present value (NPV) is 3,997,792 million rials. The simple payback period is 3 years and 9 months, while the discounted payback period (based on discounted net income) is 4 years and 3 months. Additionally, the project will create employment for 10 people.