'Find cheap land and exploit it' has a long if not exactly distinguished history.
In this case it is arguable whether it was actually cheap, after having the transport everything to a remote location.
How about by the fact that it the marketing plan worked, the hype was there, and the tickets sold out?
Couldn't you say the same thing about homeopathy?
Which is obviously a viable business model. I ludicrously dishonest and insane one, but it makes money.
They're having to refund the whole thing. The profitability was temporary based on an unrealistic offering. It's only a viable business model if it's possible to actually set up and provide the amenities - gourmet food, luxurious stay, expensive musical acts - which certainly hasn't been demonstrated.